# Concentration risk and setting limits

**URL:** https://forum.mustachianpost.com/t/concentration-risk-and-setting-limits/19492
**Category:** Uncategorized
**Created:** [August 28, 2026, 2:09pm UTC](https://forum.mustachianpost.com/t/concentration-risk-and-setting-limits/19492 "2026-08-28T14:09:06Z")
**Posts on this page:** 4
**Page:** 1

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### Author: ![PhilMongoose](https://forum.mustachianpost.com/user_avatar/forum.mustachianpost.com/philmongoose/32/12331_2.png) [@PhilMongoose](https://forum.mustachianpost.com/u/PhilMongoose)
#### Post date: [August 28, 2026, 2:09pm UTC](https://forum.mustachianpost.com/t/concentration-risk-and-setting-limits/19492/1 "2026-08-28T14:09:06Z")

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What limits do you set? E.g. max position size for a given stock, or sector.

Buffett said “When it’s raining gold, reach for a bucket, not a thimble” but then on the other hand, when you don’t have as much money as Buffett, you might not want to risk a bucket.

I recently made investments which did well, but I limited them to 20% of my portfolio. I sometimes think, it was a great opportunity, why did I not go to 40% or 60%?

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### Author: ![dom.swiss](https://forum.mustachianpost.com/user_avatar/forum.mustachianpost.com/dom.swiss/32/19499_2.png) [@dom.swiss](https://forum.mustachianpost.com/u/dom.swiss)
#### Post date: [August 28, 2026, 4:10pm UTC](https://forum.mustachianpost.com/t/concentration-risk-and-setting-limits/19492/2 "2026-08-28T16:10:05Z")

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I have different upper limits for purchases:

- Individual single stocks - 1%
- Crypto - 5%
- Basket of risky stuff and “lottery tickets” - 5%

Asset allocation goals as shown for FC 2026:

 ![image](https://forum.mustachianpost.com/uploads/default/original/3X/2/f/2ff5d3a6757fb1b0ceb46e76d3484addfa8d8d88.png)

I let it run and look at the general asset allocation once per year or adjust down to my limits when the market is red hot. Currently 3 single stocks are above 1%, which might soon get the treatment. Also, I have turned some commodities to cash recently.

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### Author: ![PhilMongoose](https://forum.mustachianpost.com/user_avatar/forum.mustachianpost.com/philmongoose/32/12331_2.png) [@PhilMongoose](https://forum.mustachianpost.com/u/PhilMongoose)
#### Post date: [August 28, 2026, 4:32pm UTC](https://forum.mustachianpost.com/t/concentration-risk-and-setting-limits/19492/3 "2026-08-28T16:32:07Z")

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Why lottery with higher limit than single stocks? I have a soft limit of 4% on single stocks.

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### Author: ![dom.swiss](https://forum.mustachianpost.com/user_avatar/forum.mustachianpost.com/dom.swiss/32/19499_2.png) [@dom.swiss](https://forum.mustachianpost.com/u/dom.swiss)
#### Post date: [August 28, 2026, 4:35pm UTC](https://forum.mustachianpost.com/t/concentration-risk-and-setting-limits/19492/4 "2026-08-28T16:35:35Z")

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Have clarified in my post