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.
See how a company fared in the last recession