facebookWhat would be a better option - owning more stocks at lesser capital invested per stock or lesser stocks with more capital invested per stocks? - Seedly

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Anonymous

18 May 2020

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General Investing

What would be a better option - owning more stocks at lesser capital invested per stock or lesser stocks with more capital invested per stocks?

For example, will owning 10 different stocks with say $500 invested in each stock OR owning 5 different stocks with say $1000 invested in each stock be a more efficient approach? Should I focus on the number counters in my portfolio OR should I instead focus on increasing the amount invested in each of my few stocks?

Discussion (2)

What are your thoughts?

Elijah Lee

Elijah Lee

18 May 2020

Independent Financial Advisor at Phillip Securities (Jurong East)

I'd take $1000 over 5 stocks, but 5 stocks that I have researched and chosen carefully.

Not forgetting that when you're invested, you still have to monitor your investments regularly. Having lesser counters to monitor is a plus.

Diversification is always a good thing for risk reduction,

I'd recommend passive indexing stock ETFs:

https://seedly.sg/questions/what-is-your-genera...

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