Concentration risk
Also: concentrated position
The danger that arises when too much wealth sits in a single asset or exposure.
Concentration risk is common in family wealth, often through a founding shareholding. Managing it calls for a deliberate plan that weighs tax, liquidity and sentiment alongside the investment case.
Concentration is how many fortunes are made and how many are lost. A single holding that built a family's wealth can also end it. Because the obstacles are usually tax and sentiment rather than analysis, families who manage it well treat it as a planned, written process.