I Was Over-Diversified — How 36 Stocks Became a Focused Portfolio of 15

I had 36 stocks. Some bought on tips. Some from IPO allotments I forgot about. Some "long-term bets" from 2019 that never panned out. My portfolio looked like a mutual fund — but without the fund manager.

The concentration analysis

White Stallion AI's India Equity tab sorted my holdings by value. The top 8 stocks accounted for 78% of my portfolio. The bottom 20 stocks? Just 9% combined. I was tracking 20 stocks that made almost no difference to my returns.

The Health Score dinged me for "over-diversification" — too many positions diluting returns without meaningfully reducing risk.

The AI-assisted trim

I asked Ask Stallion: "Which stocks should I sell from my portfolio?" The AI came back with a ranked list based on: technical weakness (below 200 DMA, declining RSI), fundamental concerns (debt ratios, earnings misses), and portfolio impact (positions too small to matter).

Over three months, I sold 21 positions. Some at a loss (tax-loss harvesting), some at modest profits. I reinvested the proceeds into my top 15 high-conviction stocks.

The result

Portfolio went from 36 stocks to 15. Average position size increased from 2.8% to 6.7%. More importantly, I now understand every stock I own. I can explain the thesis for each position — something I couldn't do with the 36-stock portfolio.