How have stock concentrations become a huge driver of wealth today? Why is diversifying away from stock concentrations so important?
The Fortuitously Aligned Misconception Error (FAME) Principle
This feeling of impenetrability can lead to what can be referred to as the Fortuitously Aligned Misconception Error (FAME), a principle seen in those who lack the recognition that their company stock is indeed a risk asset and their key retirement nest egg, which is not immune to a fall from grace (i.e. a windfall that can change with the wind).