There have been many posts on how much to invest in stocks i.e. what percentage of your portfolio should be comprised of stocks?
If you want to read a detailed guide on the optimal % of stocks, check out this article by Fool.com.
On the other hand, the above is not what i am looking for.
I am looking for the answer to one question that plagues me and a lot of other investors too (i believe):
How Much Should You Invest In A Single Stock?
In fact, i remembered reading about the importance of position sizing.
Imagine both investors A and B have $100,000 each.
Investor A likes to play it safe and invest equally into 20 different stocks.
Investor B likes concentrated bets and only invests in 5 different stocks.
Assuming in the past year, 1 stock jumped by 100% and the other stocks all increased by