Having a small portfolio goes against the grain of general investing advice where diversification is placed with high regard, due to its property to protect an investor from unknowns in individual stocks. However, there are investors who prefer to keep a tight portfolio. Some less than 8 stocks. Are they taking on exceptional risk? That would depend. If we frame our context that you are an investor with a full time job, a portfolio of 20 companies may not diversify you effectively from the unsystematic risk. Yet 20 companies, would be too much for a part-time investor to manage. If you think its passive, you probably aren’t doing enough of what is necessary. As a part time investor, sharpening your skills and keeping watch of a basket of stocks that you can manage well may be the way to go. For Bruce Berkowitz who runs a full time fund, its ......