Imagine I told you that 90% of my net worth was invested in Amazon stock. It has performed incredibly well, and I'm in a great financial position to provide for myself and my family, earmark funds for retirement, and support charitable causes. You'd be happy for me—maybe even a little jealous—but you'd probably think to yourself, "That's all well and good, but I don't know how I'd sleep at night with all my eggs in one basket." Now imagine I told you that 90% of my net worth

While a concentrated position is often described as a “risk,” it is usually the result of success. A holding that has appreciated enough to represent a significant percentage of your wealth can certainly create challenges, but it can also create tremendous opportunity if managed thoughtfully.

Wealthy families often don't fully realize the extent of their exposure because concentration risk rarely develops intentionally.