In today's #AskDrWealth series, I am going to address the most popular question from our readers and students.
"How Many Stocks Should I have In My Portfolio?"
Which Is Better? - Diversified portfolio or Concentrated Portfolio
Let's imagine that there's Investor A and Investor B, with different types of portfolio:- Investor A has a portfolio of 5 stocks (concentrated)
- Investor B has a portfolio of 30 stocks (diversified)
- Investor A: 100% / 5 stocks = 20% per stock
- Investor B: 100% / 30 stocks = 3% per stock