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This is one of the reasons why I don't believe in a concentrated portfolio. No matter how much you may think you know about a stock you can't know everything. Not even a CEO knows whether someone is committing some kind of fraud, crime, etc. that may seriously harm or destroy the value of a stock for a period of time.

Now if you are worth $10M and have millions in cash and want to invest $4M or so in a concentrated portfolio maybe that works but if you have your entire retirement (assuming a sizable amount) account in 4-8 stocks I would have a tough time sleeping.

I'm sure others may disagree but I'd prefer a more cautious approach.

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