Tax Alpha Insider

Tax Alpha Insider

Absurd reasons investors don't sell concentrated positions: "I'm holding strong"

Lessons from Baird Wealth Management and Reddit

Brent Sullivan's avatar
Brent Sullivan
Mar 19, 2025
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The Baird paper mentioned in the graphic above includes several reasons investors hold concentrated positions. But it missed a few good ones I’ve heard over the years.

So, I went to Reddit to fill in the gaps.

Why investors hold:

  1. FOMO: Tres commas

  2. Tax: Afraid to rip off the Band-Aid

  3. Past stock success: Number go up

  4. Overconfidence in predicting the future: “I…

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