"You Own Too Many Stocks"
One of the things I hear most often when I post my portfolio is:
“You own too many stocks bro.”
I’ll be honest, I agree and I disagree. Below, are my holdings, showing the number of positions I own and the weight of each one. Some investors will look at this and think I’ve lost my mind and lack strategy. I don’t blame them at a glance. Many smart, successful, and wealthy investors believe the optimal strategy is to own a small, concentrated portfolio for outperformance. Seven core positions. Mathematically, if you’re a great investor, this makes sense.
(57 total positions and % of holdings)
QQQ 13.03%, NVDA 12.25%, IBIT 7.46%, MSTR 7.19%, DKNG 6.37%,
AMZN 4.54%, VTI 4.51%, AAPL 3.57%, BRK/B 2.86%, JPM 2.43%,
CB 1.95%, LMT 1.93%, CAT 1.85%, MSFT 1.76%, UNH 1.47%,
WM 1.47%, XLF 1.45%, RTX 1.37%, XLU 1.29%, BR 1.00%,
NOC 1.00%, O 0.99%, SMH 0.96%, SPOT 0.95%, WING 0.94%,
BLK 0.94%, ORCL 0.91%, BX 0.91%, LRCX 0.88%, CAVA 0.85%,
ABBV 0.83%, CMG 0.79%, HD 0.79%, APP 0.79%, UNP 0.62%,
MAIN 0.60%, NEE 0.59%, LHX 0.55%, TRV 0.54%, FRDM 0.49%, AWK 0.49%, JNJ 0.48%, BROS 0.41%, VNQ 0.40%, HIMS 0.39%,
SBUX 0.37%, IAK 0.28%, TXN 0.27%, RSG 0.21%, DLR 0.20%,
JEPI 0.18%, SOFI 0.17%, USB 0.14%, AOS 0.11%, BWXT 0.09%, PTON 0.08%, TSM 0.06%
I’m Still Making A Concentrated Bet
Yes, I have some micro-positions that probably won’t be around forever. I’ve got a few small weightings that are unlikely to move the needle, and over time, those will likely be trimmed or eliminated.
But when you zoom out, I’m weighted in aggressive and thematic bets that I believe in.
I’m concentrated in Stocks over Bonds/ Fixed Income
I’m concentrated in U.S., not international
I’m concentrated in U.S. tech-growth, not value.
I’m concentrated in U.S. mega-cap tech and Bitcoin
So I would argue that the amount of stocks I own does not equate to being diversified. I’m actually highly concentrated in U.S. Growth-Tech.
The Classic Pushback: “How Can You Possibly Keep Up With All These Stocks?”
This is the main argument I hear against a portfolio with too many holdings. And it’s a fair one.
People will say - “How can anyone keep track of 50+ positions? Especially if you have a full-time job, or a family to raise. There aren’t enough hours in the day.”
I think this is a valid point, and why it’s not wise for most retail investors. I do have a full-time job outside of investing, but I also don’t have kids at the moment. I have the time during non-work hours to read and listen to earnings calls, and follow updates across my portfolio. But I also need to add that AI changed everything.
You Can Be a One-Person Research Team Now
Thanks to tools like ChatGPT (or your LLM of choice), you can absorb and summarize earnings call transcripts, reports, slides, and 10-Ks in minutes. You can train your LLM to brief you like you’re running a multi-billion-dollar fund, walking into the office with assistants handing you summaries and key takeaways from every company you follow.
“Talk to me while I walk — tell me everything I need to know from this earnings call.”
“Give me a 2-minute rundown of this (insert small-cap name) I’m watching.”
“Flag what changed YoY and what stood out in guidance.”
Is it always 100% accurate? No. But if something feels off, I double check references. The point is: you now have a human-like Bloomberg terminal in your pocket without paying for a $30,000/year subscription.
For most of your positions you can save a lot of time by:
Downloading the earnings call transcript, report, and slides
Feed it into your LLM
Ask it to pull what you care about, if it be margins, guidance, SSS, buybacks, whatever.
I also use and recommend FinChat.io for data analysis research. If you’re interested in checking it out, you can use my referral link: FinChat.io
And Before You Judge…
The portfolio I’m sharing in this post, it’s my largest portfolio, yes, but it’s not my only one.
Some people see my allocation and think I’m completely insane. “This guy is 41 and doesn’t even own bonds!” they say. But what they don’t know is that I do own bonds, they just live in another portfolio. I also have other fixed income exposure, some broad index ETFs like SPY, a Target Date Fund, some cash, and yes, even more Bitcoin sitting on apps like Coinbase or Robinhood.
So don’t be quick to judge someone’s entire financial picture based on one brokerage account they are sharing. And that’s the point, everyone’s portfolio is custom. You don’t know what other accounts or assets they have, what their goals are, or how their time horizon differs from yours.
Final Thoughts
A common theme of Rigatoni Capital is reminding investors that your portfolio is a custom piece of art. It’s not going to align with everyone’s goals, temperament, or current lifestyle.
Own what makes sense to you. Use the tools that exist today to make it easier, like AI.
Don’t be afraid to own ‘too many’ stocks, just be prepared to explain and defend your portfolio to yourself, not to anyone else.
Thanks for reading,
Rigatoni Capital
Disclaimer: This blog is for informational purposes only and does not constitute financial advice. All opinions are my own, and I am not a financial advisor. The information provided reflects my personal views and is intended to encourage discussion and thought among readers. Investments involve risk, including the loss of principal, and past performance is not indicative of future results. Always conduct your own research or consult with a qualified professional before making any financial decisions.