How many stocks should I own?

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.

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  1. kevin knobloch

    I have been a member for just about a year and I am just not seeing the performance promoted in the materials. If I am reading the list correctly, of the last 20 stocks added to the recommended list (going back to early ’15) only 5 of them have outperformed the S&P 500 index since being added. That is a 25% success rate! Should we throw darts instead? I know It is a short period of time and a very volatile period of time, but that is not a particularly good record. Am I wrong? Is there an explanation or justification or similar period in the past where this pattern was reversed?

    In fact that list of stocks reflects that a higher percentage of recommended stocks have underperformed, than outperformed over time. In total the list outperformed only because of the occasional “whale” that does 200% plus better than. So if a member follows the recommendations, and wants to achieve the record of outperformance promoted on this site, they need to buy all recommended stocks, otherwise they are simply praying that they will get lucky and select the occasional “whale” more often than not.

  2. Emanuele Cicalese

    i want “the motley fool” stoks.

    thank you

  3. Alden

    have about 10k ( a lot for me ) to invest .

    1. don allman

      I hear it is time to buy gold -is there a better way than owning the hard -hold in your home-asset?
      Like stock in a gold minining
      ETF -does that multiply your potential
      Silver ?
      Member of MDP since August this year
      those are the only two commodities I have a passing knowledge of.

  4. Steve

    I am a member of Rule Breakers and get the recommended “Buy” candidates each month. My amount of funding to invest is around $400,000. How would you recommend that I invest this money in each months newletter recommendations? Eventually, systematic investing will use up all of the funds, but the Buy recommendations will keep coming.