How many stocks is a good number to own?

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  • How many stocks is a good number to own?


Answer #1 | 22/12 2013 10:54
If you really have 12,000 companies in your account, then you qualify as a super diversified private mutual fund. The larger the diversification the closer your investment results mirror the general market performance.
Answer #2 | 22/12 2013 11:19
Obviously depends on the average price of the stock, but having 5 (or more) will give you greater diversification.
Answer #3 | 22/12 2013 11:01
Buy QUALITY dividend paying stocks, like XOM, JNJ, PG, and reinvest the dividends. Wait 30 years, and you will be wealthy. SDY and DVY would also be a good option. Most "unsuccessful investors" are IMPATIENT, ILL-INFORMED, AND GREEDY. Invest like Warren Buffett. You probably can't go wrong.
Answer #4 | 22/12 2013 11:30
About 8-10 You could split your portfolio into 80% low risk, 15% medium risk and 5% high risk. Also 80% equities and 20% bonds Also you could have some diversification globally, say 80% domestic and 20% overseas. You want to move away from income stocks (defensive) unless you want income (!)
Answer #5 | 22/12 2013 12:36
The less stocks you own, the greater the chances of making or losing money. The more stocks you own, the diversificaction lowers the risk, but slao lowers your chances of a big hit. You can't have it both ways. LOL So it is up to you.
Answer #6 | 23/12 2013 05:57
A generally accepted theory on diversification considers 30 stocks to be a well diversified portfolio.(See central limit theorem, modern portfolio theory, etc.) Having 3 - 5 stocks in your portfolio would raise your risk, unless those stocks have the proper correlation. Either way, if you put all your eggs in one basket (or 3-5 baskets) WATCH THAT BASKET.
Answer #7 | 22/12 2013 16:00
all depends on how big of a fee they charge to buy and sell stock

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