How Many Stocks Should I Own?

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 the image of the book at left to be taken to its Amazon page.  (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)

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Add To Your Winners!

The market looks like it’s going on sale…and that’s just fine with me!

There are two companies in particular that I want to buy more of: Nvidia (NASDAQ: NVDA) and Invitae (NYSE: NVTA).

Nvidia is up over 200% since I bought it.   Invitae is up 118%.   I’m not even considering selling either.

What history has taught me is that the real money is made holding, and adding to.  That’s exactly what I intend to do.

Will it be easy?  No!

Will there be bear markets?  Yes!

However…look at the biggest winners of our time.   In these cases, you made a fortune by holding and holding.

Read this amazing article, by John Huber of Base Hit Investing, that is an absurd example of that.  (When I use the term “absurd: I mean that in a positive way!!)

Until tomorrow – here’s to your wealth!

 

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 the image of the book at left to be taken to its Amazon page.  (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)