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Stocks
Position Sizing & Risk
You know healthcare. That doesn't mean you should put 30% of your portfolio in Stryker. See your concentration risk and opportunity cost.
Inputs
Don't include real estate, practice equity, or retirement accounts you won't touch
Be honest. Few stocks return more than 10–15% long-term.
Even great companies routinely drop 30–50% in bear markets
S&P 500 long-term average is ~10%; conservative is 7–8%
Position vs Portfolio
5.0%
of your liquid portfolio in one position
Medium concentration risk
Projected outcomes (5-year horizon)
Best case (15% annual)$100,568
Profit vs starting position+$50,568
Same $ in S&P 500 (8% annual)$73,466
Outperformance over index+$27,101
Downside scenarios
40% drawdown loss−$20,000
Impact on total portfolio−2.0%
If position goes to zero−5.0% of portfolio
💡 Medium concentration assessment
A 5–10% position carries meaningful concentration risk. Reasonable for high-conviction ideas but monitor closely.
Educational only — not financial advice. Position sizing depends on your full financial picture (income stability, debts, other illiquid assets like practice equity). Many physicians are unintentionally over-concentrated in healthcare via their practice, employer stock, real estate, and individual healthcare picks combined. Diversification matters more than stock-picking.