How many stocks is too many?

Hi Gabriel,

It depends on your personal comfort level with stocks investment. If you have strong conviction and believe that your holdings will compound, there is no need to diversify.

Sometimes, a mistake for investor is to di-worsify. Invest in the stocks that you have high conviction and always reserve cash at the side to average down more during dips!

I Would ask myself how many stocks am I comfortable with.

If I know 5 companies inside out. I would be comfortable holding just 5.

But if I am a relatively passive investor, I think holding 10 stocks would be optimal as the monitoring would not take up too much of my time.

10 - 15 is good number. having too many stocks makes it harder to track the progress of the companies in your portfolio.

Hi Gabriel,

There is such a thing as over diversification, so you'll want to hold only as many as you can manage to monitor.

For most people that's around 20 counters at maximum, I would say a good number is 15 - 20.