Why Is Cliff Sosin Comfortable With 80% of His Portfolio in Carvana?

Cliff Sosin is comfortable keeping most of his portfolio in Carvana because he thinks about the stake the way an owner thinks about a company, not the way a study of price swings tells a typical investor to diversify. Patrick O'Shaughnessy describes the portfolio as roughly 80 percent Carvana, a vacations holding, and about 5 percent Meta, with one position at 80 percent, and Sosin agrees. Asked whether an AI sizing tool would put less in Carvana, he says he is underweight and that it should be 90 percent.

He would not hold this much if he did not believe Carvana's infrastructure and brand left few scenarios that work out really badly. He compares it to finding Walmart, Home Depot, or Fastenal early and then failing to take the full ride. The investors who did very well tended to be concentrated, and the people who concentrated and lost are the ones that history leaves out. He says the diversification research is the right guide for someone seeking average or slightly better results, and that is not what he is seeking. A large rise that pushed him to diversify would be fine. He treats the stake as a trade-off between expected return and a risk he is choosing on purpose. That is his view of his own portfolio, not a recommendation.