NakedPuts2011

"But if other stocks bought in the completion portfolio appreciate (rather than depreciate), the tax liability from the capital gains of the concentrated stocks will not be able to be offset.

After all, no one will intentionally to buy some other stocks for the completion portfolio which are expected to depreciate. The logics seems to be a little bit strange to me "

Sure , no one wants to buy stocks that will depreciate. But can you have a perfect portfolio that will never have any losing stocks? If so you're either a genius or very very lucky or the market is simply in a huge bull trend

And yes if you don't have any losers , then you might postpone the sale of the concentrated stock until you have a better moment