How Many Stocks Do You Own?
Read the full article: http://jeflin.net/2008/08/03/how-many-stocks-do-you-own/
We have all heard about the mantra - “Don’t put all your eggs into one basket.” This sounds like good and reasonable advice, especially when the stock market is fraught with uncertainty and you are a risk averse guy. But it is also an investment sin to spread yourself too thin.
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Thanks Ron for your
Thanks Ron for your comments. Indeed, there is only so much time we have in a day and so much knowledge we can read up on an industry.
Trying to track 20 stocks and stay on top of things
is no mean feat.
http://jeflin.net
So, how would you properly
So, how would you properly diversify your small holdings? A few stock in different sectors or all in one sector?
I couldn't agree more. No
I couldn't agree more. No diversification could spell disaster, but over-diversification can be just as harmful to a portfolio. How many things can you really keep an eye on carefully at one time? Focus on your strengths and your core competency. Great article Jeflin!