There is no magic percentage, but the founder-specific point is that you are already making one giant concentrated bet: your company. Your equity, your salary, and often your reputation all ride on it. So the money outside the company is where you want diversification and calm, not a second high-risk portfolio. Many people who do pick stocks treat it as a small satellite, a slice they can afford to see cut in half without it touching their life, while the core stays in low-cost index funds. A useful test: if this stock went to zero, would it change your plans? If yes, it is too big. Keep individual stocks a minority of your investable money, and keep the emergency buffer and core untouched. Tax on any gains changes over time, so confirm current rules with a CA or a qualified advisor.
A curated summary to orient you, not advice. The resources below are the real value.
3 hand-picked resources, 1 India-specific, 2 link-checked. Pick how you want to dig in.
Why we picked it The clearest, calmest case ever written for low cost index investing and leaving it alone. Global, but the mindset travels straight to India.
From jlcollinsnh.com by JL Collins
Open jlcollinsnh.com →Why we picked it The market regulator own free investor-education portal: unbiased basics on investing, mutual funds, and avoiding scams, with nothing to sell you.
From SEBI by SEBI
Open investor.sebi.gov.in →Why we picked it The best reminder that avoiding ruin beats chasing returns, and that wealth is the money you don't spend. The whole founder concentration problem, told as stories.
From The Psychology of Money by Morgan Housel
