Despite the proven risk-reduction benefits of portfolio diversification, it cannot be argued that one of the ways to get truly rich from equities is to have an exceptionally concentrated portfolio. If a stock is going to go up 10- or 20-fold, then owning a giant position in one great stock is a sure way to riches.

Some aggressive investors will double down on winning positions as a way to further concentrate their portfolio positions. Here are five tips on how to determine what companies to double down on and when to do it.

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  1. It’s really quite basic but sadly most people are too lazy to do the research to stay informed enough so they can truly take advantage and double their earnings.

    Thankfully my children are ahead of the curve on investing.

  2. Double down? What is this vegas? Oh come on!

  3. I use to watch CNBC for advice but then you find that no one knows anything. As Wall Street Journal pointed out that a random ground of monkies tossing darts had a better predictor rate than well trained analysts.

  4. Maybe i am reading it wrong but i gather when you read the entire pieve that you jump in when things are growing but wait a minute isnt that the worst time since you are coming in too late? I usually take action when trends are on the downturn and i can buy for less.

  5. It really depends what your objectives are — is it long term or short term gain. Age of the investor is also important. If you are young then you can take more risk and going for growing companies is the best way to go.

    For those in their later years going with fixed income picks is the best option.

    Everyones case is different.

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