Understanding your portfolio allocation - how your money is distributed across different stocks, sectors, and asset classes - is key to managing risk and achieving your investment goals. Tendrill helps you see the big picture.
By position: How much is in each individual stock/ETF
By sector: How much is in technology vs healthcare vs financials
By asset class: How much is in stocks vs bonds vs cash
By geography: Domestic vs international exposure
Why it matters: Allocation determines your risk profile. A portfolio that’s 80% in one stock behaves very differently than one spread across 50 positions.
You: Show me my allocationTendrill: 📊 Your Portfolio AllocationBY POSITION (Top 10 of 15):1. NVDA - $44,500 (33.9%) ⚠️ Concentrated2. MSFT - $19,800 (15.1%)3. AAPL - $14,600 (11.1%)4. VOO - $12,300 (9.4%)5. GOOGL - $8,400 (6.4%)6. AMZN - $7,200 (5.5%)7. TSLA - $6,200 (4.7%)8. VTI - $5,100 (3.9%)9. JNJ - $4,800 (3.7%)10. JPM - $4,200 (3.2%)... and 5 more positions (3.1% total)Total: $131,200⚠️ Note: Your largest position (NVDA) is over 30% of your portfolio. This means NVDA moves will significantly impact your overall performance.
You: Show me stocks vs bondsTendrill: 📊 Asset Class AllocationStocks: 91.2% ████████████████████████████Bonds: 5.8% ██Cash: 3.0% █Your allocation:• $119,700 in stocks (individual + ETFs)• $7,600 in bonds (BND, AGG)• $3,900 in cash/money marketFor context:• This is an aggressive allocation• Traditional "balanced" is often 60% stocks / 40% bonds• Younger investors often hold more stocks; near-retirees lessRisk profile: Growth-oriented / High volatility tolerance
When too much of your portfolio is in one position, that position’s ups and downs disproportionately affect your whole portfolio.
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Scenario: NVDA drops 20%Portfolio A (NVDA is 5% of portfolio):• NVDA impact: -20% × 5% = -1% portfolio• Total damage: MinimalPortfolio B (NVDA is 35% of portfolio):• NVDA impact: -20% × 35% = -7% portfolio• Total damage: SignificantSame stock, same drop, very different outcomes.
You: Is my portfolio balanced?Tendrill: 🔍 Portfolio Balance Analysis⚠️ CONCENTRATION ALERTS:Single-stock risk:• NVDA at 33.9% exceeds typical 10% guideline• Your top 3 stocks = 60% of portfolioSector concentration:• Technology at 65.2% (vs 30% in S&P 500)• You're making a big bet on tech continuing to outperformCorrelation risk:• NVDA, MSFT, AAPL, GOOGL are all large-cap tech• They tend to move together in market stress✅ POSITIVES:• Some diversification through VOO and VTI• Small bond allocation provides slight buffer• 15 total positions (reasonable number)SUMMARY:Your portfolio has done well because tech has done well.But a tech correction would hit you harder than most.
You: How does my allocation compare to the S&P 500?Tendrill: 📊 Your Portfolio vs S&P 500Sector You S&P Difference----------------------------------------Technology 65% 30% +35% (overweight)Healthcare 9% 13% -4% (underweight)Financials 7% 13% -6% (underweight)Consumer Disc 6% 10% -4% (underweight)Communication 4% 9% -5% (underweight)Industrials 5% 8% -3% (underweight)Other 4% 17% -13% (underweight)Key takeaway:You're making an active bet on technology at the expense of almost every other sector. If you want to match the market, you'd need to reduce tech and add to financials, healthcare, and consumer.
You: Has my allocation changed over time?Tendrill: 📊 Allocation Drift (Past 12 Months) Jan Now Change--------------------------------------Technology 52% 65% +13%Healthcare 12% 9% -3%Financials 10% 7% -3%Other 26% 19% -7%What happened:• NVDA grew from 18% to 34% (price appreciation)• Other sectors shrunk as % (not losses, just slower growth relative to tech)This is called "drift" - when winners grow and losers shrink, your allocation naturally shifts.Some investors rebalance periodically to maintain target allocations. Want to learn about rebalancing?
Rebalancing means selling some of what’s grown and buying more of what hasn’t, to return to your target allocation.
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You: Should I rebalance?Tendrill: 🔄 Rebalancing AnalysisCurrent vs Target (example 60/30/10): Current Target Action needed---------------------------------------------Stocks 91% 60% Sell ~$40kBonds 6% 30% Buy ~$32kCash 3% 10% Add ~$9kIf your target were "whatever I have now":• NVDA at 34% - would need to trim ~$26k to get to 10%• Tech at 65% - would need to sell ~$46k to get to 30%Things to consider:• Selling winners triggers taxes (in taxable accounts)• NVDA might keep going up (or down)• Rebalancing reduces risk AND potential returnsThis is not advice - just math. Talk to an advisorabout whether rebalancing makes sense for your situation and tax implications.
There’s no universal answer - it depends on your age, goals, risk tolerance, and time horizon. Generally:
Younger investors: More stocks, higher risk tolerance
Near retirement: More bonds, capital preservation focus
Diversified: No single position over 10%, broad sector exposure
How did my allocation get so concentrated?
Usually through success! If you bought NVDA at 200anditwentto900, it naturally becomes a bigger part of your portfolio without you buying more. This is good for returns but increases risk.
Should I sell my winners to rebalance?
It’s a personal and tax decision. Rebalancing reduces risk but caps potential gains. In taxable accounts, selling triggers capital gains taxes. Many investors rebalance gradually or only in retirement accounts.
