After listing out the various accounts that my wife and I have with our stock holdings last night it became very apparent that we are too concentrated-in particular in the various Gladstone term preferreds.
The problem we have is we make these investments through 4 different accounts (2 with Fido and 2 with eTrade) and I have not taken the time to coordinate the holdings. We might have a full position of a particular issue in 2 or 3 different accounts–I know that is pretty silly and actually pretty careless. It has worked fine for years, but I would be quite angry with myself if this concentration of risk cost me $1,000’s. Some might think that an easy answer would be to just roll the accounts together into maybe 2 accounts, but we don’t do that because a) I like having 1 acct at Fido and 1 at eTrade and b) being self employed we have not ever had joint finances because we try to isolate assets. Even though I carry a lot of insurance in case I am sued you just never know.
It goes to show I need to pay attention to risk management investing instead of doing other things that are not of great importance.
So my only New Years resolution will be to get this risk spread out more during the course of January and February. This will mean I will probably be ‘forced’ to own some stuff I am not excited about–like the Eagle Point Credit baby bonds or term preferreds.