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How many stocks in a portfolio?
#11
I guess the answer is: Whatever amount you feel comfortable owning.

I might be wrong but I'm fairly certain Charlie Munger said one only needs to hold up to three stocks lol...I vaguely remember him saying that at one of the shareholder meetings I attended. I do know that WB said diversification is for people who don't know what they're doing--he also said diversification keeps one safe while concentration will make one extremely wealthy--MAN--with either advice one better not make ANY mistakes. WB also said buy an Index fund and forget it.
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#12
(09-11-2019, 07:53 AM)rayray Wrote: I guess the answer is: Whatever amount you feel comfortable owning.

I might be wrong but I'm fairly certain Charlie Munger said one only needs to hold up to three stocks lol...I vaguely remember him saying that at one of the shareholder meetings I attended. I do know that WB said diversification is for people who don't know what they're doing--he also said diversification keeps one safe while concentration will make one extremely wealthy--MAN--with either advice one better not make ANY mistakes. WB also said buy an Index fund and forget it.

As much as I respect them both, holding all your wealth in three stocks is absolutely reckless advice neither of them has actually followed for 50 years, if they ever did.  Advice given by the same guys that brought you KHC.  They say a lot of things for shock value these days, especially Charlie.  They contradict themselves, but we are smart enough to sift through it on this forum.
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#13
One of the benefits of holding 60+ stocks across various sectors is that at any given time there will be opportunities to sell some shares at a profit when they are overvalued and to buy others when they are undervalued. When done properly, this produces different results than holding an index ETF or index mutual fund. I also profitably trade partial positions of index ETF's several times a quarter.

Retired now, but had the same number of stocks when I was working and managed the portfolio on weekends and during my lunch break.
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#14
(02-18-2020, 03:47 PM)Main Street Stock Investor Wrote: One of the benefits of holding 60+ stocks across various sectors is that at any given time there will be opportunities to sell some shares at a profit when they are overvalued and to buy others when they are undervalued. When done properly, this produces different results than holding an index ETF or index mutual fund. I also profitably trade partial positions of index ETF's several times a quarter.

Retired now, but had the same number of stocks when I was working and managed the portfolio on weekends and during my lunch break.
This is a huge advantage of owning stocks in every sector.  There is almost always something out of favor that needs to be purchased.  As long as you can make the time to keep yourself current on why a stock is moving before you jump in (or trim).
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