Concentrated Stock: From Hidden Risk to Resilient Opportunity

Concentrated positions can come with complexities, from the added risk for a HNW client to the discussions about them. This white paper equips financial advisors with clear strategies to act on them skillfully and help turn outsized exposure into enduring wealth.

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Financial advisor discussing digital concentrated stocks with investor

The Risk Hiding in High-Net-Worth Portfolios

In this white paper, you’ll learn how to:

  • Recognize positions in need of attention
  • Frame client conversations, understanding why clients can be emotionally attached to certain positions
  • Handle client objections gracefully with specific approaches tied to the most common barriers

Implement a plan to address concentrated positions, based on clients’ goals 

  

Tricky to Handle, Risky to Have

Emotions can run deep with concentrated stock — a client, proud of a successful investment or loyal to a person who left them stock. They also come with volatility, which makes them disproportionately risky. 

Outsized Risk graphic with text: 15% of wealthy investors hold a single stock representing 10% of their net worth.
What's at Stake graphic with pie chart and text: 10% weighting of a volatile stock can significantly skew portfolio risk.

"The most effective concentrated stock strategy begins not with the holding itself, but with a clear understanding of the client's goals, values, and vision for their wealth."

Tara Popernik, CFA®, CFP®

EVP Wealth Planning, LPL Financial

LPL Financial Creative Graphic

Take the Next Step to Protecting Clients

From identifying concentrated-stock risk to acting on it, getting started is easy with this guide that unlocks key strategies every step of the way.

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Disclosures

For Financial Professional Use Only.