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Subject:  Re: do you limit your holdings to a % of portfol Date:  3/21/2014  8:00 PM
Author:  intercst Number:  74589 of 100991

2gifts asks,

DH and I have been going back and forth on this, and so I'm curious what others do. I do have one stock that is about 10% of my portfolio, and given how many things are in there between taxable accounts, IRA accounts, and even my portion of the investment club, that is starting to feel high.

My rule of thumb is to only have as much of your portfolio in one stock that you could afford to lose (i.e., if you could survive at most a "permanent" 25% drop in your portfolio without affecting your lifestyle in retirement, then 25% is the most I'd put in one stock.

Of course, I "grew up" working for Exxon where it wasn't uncommon to see work-a-day engineers retire with $3 or $4 million in company stock because they maxed out their 40lk with 100% stock and never sold a share in the last 40 years. I guess that works with Exxon and Berkshire Hathaway -- Enron, not so much.

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