How Many Companies Should I Own?

In this edition of The Motley Fool's "Ask a Fool" series, Motley Fool analysts Jason Moser and Brendan Mathews take a question from a reader who asks, "How many companies should I own?"

Brendan starts by suggesting that investors own at least 15 companies. That will allow at least a minimum amount of diversification. Beyond that, it really depends on the investor's situation and preferences. Some investors like to own a lot of stocks to increase their diversification. Others like to focus on their best ideas. That's how Jason likes to invest, and he describes why.

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  • Report this Comment On March 21, 2014, at 5:08 AM, Interventizio wrote:

    I agree: 15 to 20 is a reasonable number. It's not even true that you have to know and to follow all the companies you own. Some charts can help you simplify your work. Plus, I've been doing well owning companies I basically I knew little about, such as WFC and IBM, just following Buffett's lead. And some major performers (SILC, DTLK) were handed to me by Fool, I'm happy to say.

  • Report this Comment On March 31, 2014, at 2:35 AM, davaidesign wrote:

    "owning companies I basically I knew little about"

    Genius!

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