Conservative Investor: Apple Position Within Limits

POSITION SIZING CHECK
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Stock: Apple (AAPL)
Type: Blue-Chip
Your Risk Tolerance: Conservative

RECOMMENDATION:
Maximum Position Size: 10% of portfolio ($10,000)
Your Planned: 8% of portfolio ($8,000)

Status: ✓ WITHIN LIMITS

Your $8,000 investment is appropriately sized for a conservative investor buying a blue-chip stock like Apple. You're staying within the 10% maximum limit and have $2,000 of additional room if you want to add more later.

WHY THIS MATTERS:
As a conservative investor, you prioritize capital preservation over growth. Even though Apple is a high-quality blue-chip stock with a strong track record, limiting your position to 8-10% ensures that if Apple experiences a significant drawdown (like the 27% drop in 2022), the impact on your total portfolio is manageable. An 8% position means even a 50% drop in Apple would only cost you 4% of your portfolio value—painful but recoverable.

NEXT STEPS:
1. Proceed with your $8,000 investment—this is a reasonable position size
2. You have $2,000 of additional allocation room (up to the 10% max) if you develop higher conviction
3. Monitor position size quarterly—if Apple appreciates significantly and grows beyond 10-12% of your portfolio, consider trimming back to your target
4. Ensure your remaining $92,000 is diversified across 7-12 other positions to maintain a well-balanced conservative portfolio
5. Avoid concentrating too much in tech sector overall—Apple should be one of several core holdings across different sectors