How Many Stocks Should I Have in My Portfolio?

[{"selector":"#anim-6fe22035-b7aa-47db-af9f-22fe0169d8d9","keyframes":{"opacity":[0,1]},"delay":250,"duration":3000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-4ae66ee6-e0e0-4437-b3fe-c26c83908092","keyframes":{"opacity":[0,1]},"delay":0,"duration":5000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ed3add86-69c5-44fa-9db5-e1f2449768ed","keyframes":{"opacity":[0,1]},"delay":0,"duration":3000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Learn more

If you have all your money in mutual funds you don’t need to worry about this question (because your money is managed for you) but if not, here are a few factors you’ll want to consider:

[{"selector":"#anim-534ab452-7c90-4541-8b0f-8c37cd5cc557","keyframes":{"opacity":[0,1]},"delay":0,"duration":1500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-e6d0f116-d848-4d37-bb9d-fa8211617908","keyframes":{"opacity":[0,1]},"delay":250,"duration":1500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Learn more

Risk Tolerances

[{"selector":"#anim-51a47938-f876-43cb-8c86-0c4439986e69","keyframes":{"opacity":[0,1]},"delay":250,"duration":1500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-e1967d59-497a-4246-b688-9415c77b3b13","keyframes":{"opacity":[0,1]},"delay":0,"duration":1500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c5271464-80c1-46ba-a34c-7cfc1c75bb2e","keyframes":{"opacity":[0,1]},"delay":500,"duration":1500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-7ca62455-46b3-4e8d-8953-8d3cc0d2cfc8","keyframes":{"opacity":[0,1]},"delay":250,"duration":1500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Learn more

Typically, the trend is that the more money you have, the greater your “ideal number of stocks” is.

[{"selector":"#anim-9f07bf9b-b2ba-4939-8484-0b2ca7770855","keyframes":{"opacity":[0,1]},"delay":250,"duration":1500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-648dbf2f-c8e7-427c-a7cc-5e8ea9ad2282","keyframes":{"opacity":[0,1]},"delay":0,"duration":1500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-e19cf7f7-2ad3-4e28-95fc-5f32d441becc","keyframes":{"opacity":[0,1]},"delay":0,"duration":1500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Learn more

Brokerage Features

[{"selector":"#anim-d8505dc5-dc79-4c4c-8be2-eb56bb8991dc","keyframes":{"opacity":[0,1]},"delay":500,"duration":1500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-99398063-2f9d-46e2-bbb2-d8c0a91d5fbf","keyframes":{"opacity":[0,1]},"delay":0,"duration":1500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-9ae2482b-3b5c-4ac2-8aa4-61e944524a1c","keyframes":{"opacity":[0,1]},"delay":500,"duration":1500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-bf6c2b02-ea76-4c7f-9e75-53109716ac9e","keyframes":{"opacity":[0,1]},"delay":500,"duration":1500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Learn more

If you want a highly diversified portfolio, the best way to get it is through buying ETFs and index funds, in which case you’ll technically be owning one “stock” but the stock will have funds in tens or hundreds of other stocks.

[{"selector":"#anim-94e7fde5-73e7-44c0-8695-cfdadbdf1b61","keyframes":{"opacity":[0,1]},"delay":0,"duration":1500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-075eab97-ba9d-4115-a17b-6f99362789b4","keyframes":{"opacity":[0,1]},"delay":250,"duration":1500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Learn more

On the other hand, if you want a super-concentrated portfolio, you’ll likely want to invest in a single company or just a couple of stock holdings.

[{"selector":"#anim-a1c0b9c7-eb74-4ec3-bd99-1b07a58a06a1","keyframes":{"opacity":[0,1]},"delay":500,"duration":1500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-7410a469-114e-4ae8-9cf0-8e87265563d3","keyframes":{"opacity":[0,1]},"delay":0,"duration":1500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-222f73a0-3df1-4dac-92e8-8b56a6d979f1","keyframes":{"opacity":[0,1]},"delay":500,"duration":1500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Learn more

This will let you really take advantage of the growth of the company if it takes off and give you the potential to make a lot of money.

[{"selector":"#anim-683592f3-5796-4494-89bc-e904ff405509","keyframes":{"opacity":[0,1]},"delay":250,"duration":1500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-82ad978c-2534-44c1-8544-62935a53126d","keyframes":{"opacity":[0,1]},"delay":0,"duration":1500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Learn more

Swipe Up

[{"selector":"#anim-8da844fb-1f43-4f90-acad-f9ef2791af03","keyframes":{"opacity":[0,1]},"delay":0,"duration":1500,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-cf9433fe-feb0-489c-b2bb-7c5c0d0f877d","keyframes":{"transform":["translate3d(0px, -289.76616%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1500,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-9ff662a4-6bfd-478b-ab1c-dae902cf84b0","keyframes":{"opacity":[0,1]},"delay":0,"duration":1500,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-73d648b0-faa3-4895-857e-2a5c645f31e7","keyframes":{"transform":["translate3d(0px, 181.56378%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1500,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Learn more

How Many Stocks Should I Have in My Portfolio?

If you have all your money in mutual funds you don’t need to worry about this question (because your money is managed for you) but if not, here are a few factors you’ll want to consider:

Risk Tolerances

Generally speaking, if you can tolerate more risk, you can afford to invest in fewer stocks (and have a more concentrated portfolio).

Typically, the trend is that the more money you have, the greater your “ideal number of stocks” is.

Amount of Capital

Brokerage Features

The worst thing you can have happen to you is to buy all sorts of stocks from different companies in different industries and realize that you’ve paid a hefty commission on each purchase you’ve made.

If you want a highly diversified portfolio, the best way to get it is through buying ETFs and index funds, in which case you’ll technically be owning one “stock” but the stock will have funds in tens or hundreds of other stocks.

On the other hand, if you want a super-concentrated portfolio, you’ll likely want to invest in a single company or just a couple of stock holdings.

This will let you really take advantage of the growth of the company if it takes off and give you the potential to make a lot of money.

Swipe Up

for more finance, business, and real estate advice

Read More