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2 Paths of Investing – Diversification Vs Focus
By StockBrokerPlaysPoker  •  February 4, 2015
How many stocks should I hold in my portfolio? Often there's no one size that fits all. I think it really depends on one's objective towards investing, like 1) are you trying to get market returns? (say similar returns to the S&P 500 or the STI) 2) are you trying to beat the market? 3) are you trying to preserve your capital while seeking dividends as a passive income? I think questions like these will lead to the idea of whether one should stay diversified (say 20-30 stocks) or stay focused (5 to 10 stocks) In the past I used to hold like 10-20 stocks, but my goal has always been the same till now, that would be to generate a return that's higher than the index (say 2 percentage points or more above the STI ETF). I felt that by holding that many stocks, it was very unlikely, given ......
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By StockBrokerPlaysPoker
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