Hi Hitesh ji
I hope you’re doing well. I would like to get your opinion on the following situation:
One of the stocks in the portfolio has grown disproportionately compared to the others. It is a strong company with capable management, and both the sector and the stock still have significant growth potential. There’s a high confidence in it. However, the performance of this single stock now largely dictates the overall direction of the portfolio. The portfolio is somewhat diversified, but this sector is represented solely by this one stock.
In this scenario, should one consider trimming this high-potential stock for the sake of diversification, allocation, or balancing etc ?
Thanks.
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