If you have money in the market, you’re doing more for your financial future than half of Americans. But you might not be doing enough.
Too many investors own shares in just a handful of companies, leaving themselves open to catastrophic results if those companies — or their industries — hit hard times. So how many stocks should you own?
At The Motley Fool, we recommend everyone own at least a dozen companies, across a variety of industries, countries, asset classes, and investment styles (growth, value, and more).
Owning just a couple companies is risky, especially if they’re in the same industry. Owning a dozen companies or more allows you to avoid potential disaster while also increasing the odds of finding your biggest winners.
If you’re on the hunt for companies to add to your portfolio, we’d encourage you to take a look at Stock Advisor, our flagship newsletter service. Since its inception, the service has roughly tripled the returns of the S&P 500. Dozens of the team’s recommendations have more than doubled … but plenty have also fallen far short of expectations. That’s why you need to diversify your portfolio to minimize downside risk and set yourself up for long-term wealth.
If you’re interested in finding some of those great companies to buy, we’ve set up an opportunity for you to take a free 7-day trial to Stock Advisor today.
Whether you take our advice, turn to one of our competitors, or go it alone, we strongly encourage you to build a portfolio of at least a dozen companies so you can avoid the mistake that has cost so many investors their financial independence. Put yourself on the path to financial success with a well-rounded, reduced-risk portfolio.