Allocation (C/A)
Bet big on conviction, or spread risk wide?
This axis measures how you spread risk. C (Concentrate) bunches assets where conviction is highest. A (Allocate) spreads them widely across assets, names, and markets.
The real difference is the shape of the outcome. C accepts 'big if right, big if wrong'. A accepts 'closer to average' as the price of stability.
This axis sets the fourth letter of your code (C or A). Two people with identical R/D/L can have very different expected outcomes once C vs A enters.
CConcentrate · conviction-first
C-leaning investors believe deeply that 'put serious money where you have serious knowledge' is the most efficient form of risk-taking. Diversification feels like buying names you don't know.
The superpower is thesis depth — the more deeply you know a name, the less volatility moves you. The trap is overconfidence and dismissing disconfirming data.
The belief that more conviction must mean more weight. Cap any single name at ~30-40% of total assets as a hard one-line rule.
AAllocate · diversification-first
A-leaning investors prioritize survival over being right. Risk is split across asset classes, names, and markets so a single event can't shake the whole portfolio.
The superpower is low volatility and psychological calm — A-types sleep well, which helps them avoid panic-sell mistakes. The trade-off: capped upside in roaring bull markets.
When the spread gets too wide, you stop knowing what you own. Cap at ~10 holdings: an 80% indexed core, a 20% thematic satellite, and a hard line between them.
Daily-life signals
This axis usually reveals itself in small behaviour patterns — these are the easiest tells.
- ◆Do your top 3 holdings make up more than 50% of your portfolio?
- ◆Is there a name in your portfolio you secretly think 'will change my life' if it works?
- ◆When one name drops 30%, can you instantly compute the portfolio-level hit?
- ◆Do you keep more than half of your assets in ETFs or index funds?
How this axis interacts with the others
Combinations of axes do more than the parts — these are the most important cross-axis effects.
- 🎯Risk appetite (R/P)C + R = 'all-in offense' (big reward / big loss). A + P = 'spread defense' (stability first).
- 🧠Signal style (D/I)C + D = concentrated on a checklist. C + I = concentrated on a vision. Same concentration, different fuel.
- 🌳Time horizon (L/S)C + L = a few long holds (Buffett style). A + S = many small short trades — horizon × spread = trade frequency.
Self-check questions
No right answer — just answer honestly to feel which pole you lean toward.
- 1.What percentage of your assets is held in your top 3 names?
- 2.Could you instantly compute what a single name at −50% would do to your total?
- 3.Does 'diversification is safety' feel intuitive to you, or 'concentration is profit'?
- 4.Do you draw a clear line between your 'don't touch' core and your 'experiment' satellite?
Your full code lines all four axes up side by side — take the test to see yours.