The number of stocks you own depends on your situation and resources.
In a perfect world, 15 is a good number to shoot for.
Now throughout history, some of the greatest investors have owned hundreds of stocks. Shelby Davis is a name rarely mentioned when we read about great investors, but he started investing at the age of 38 with $50,000 that his wife gave him, and turned it into $900,000,000. He owned hundred of stocks, primarily in the insurance business.
Then there’s Stewart Horejsi. He was a small business owner in the 90s, and became a multi-billionaire investing all of his money in one stock – Berkshire Hathaway. He started investing when the share price was $280; today one share is $323,000.
So as you can see, there are many ways to play it. You can buy 15 stocks and spread your risk, or zero in on one business you really like. The latter is obviously riskier, because you only have one shot…but if you’re right, the results can be tremendous!
Have a good day, everyone!
My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.
Click here to be taken to its Amazon page.
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