Keep in mind our guidance is not personal. Many investors are comfortable with large weightings in single stocks. But as general advice to a general audience, it is hard for us to endorse very big positions. Many investors cannot handle the risk. Now, RY, being the largest Canadian bank, is one stock where a higher weighting is likely better than a giant position in something else. But there is still risk to any stock. We think it is fine overall, and would not consider it a SELL. But we would be overall more comfortable with more diversity within the financial sector, with TD likely the best addition considering BNS is owned elsewhere. It really comes down to a question of how much risk an investor wants to take. We are of the view that any stock, any time, could see a very large drawdown. Investors with giant positions need to be comfortable with that possibility. A big hit on a big position can set back a portfolio's return for years.
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