For those who can't (or don't want to) view the video clip, what follows is a transcript:

Hi, Fools, Ron Gross here, lead advisor for Million Dollar Portfolio, with my "120" on allocation -- something I also call "opportunistic overweighting."

Now, in a prior 120, we talked about the importance of diversification -- owning at least 15 stocks, but perhaps no more than 50 stocks, so we spread our risks out. When we manage a portfolio, we want to make sure we are also properly allocated across sectors. That way, we spread our risks out across separate industries as well.

At Million Dollar Portfolio, we own a number of different sectors, but we're not afraid to make strategic bets. That's where the "opportunistic overweighting" comes in. A good example is what we've done with the restaurant sector in the past. At one point, we made investments in four restaurant stocks: Chipotle, Buffalo Wild Wings, Steak 'n' Shake, and Starbucks.

This was a pretty big bet for us, but we thought that there was a compelling thesis there. Luckily, the thesis was right on the money, and those stocks grew to become 25% of our portfolio at one point, before we pared it back. So make sure that you're allocated across sectors so you spread your risk out among industries, but don't be afraid to overweight stocks of any one sector when you think you have a compelling thesis. That's my 120 on allocation. Fool on.