How Many Stocks Should You Have in a Portfolio?

How concentrated should your portfolio be? Consider the pros and cons of owning more stocks.

By Rachel Warren – Updated May 3, 2026 at 5:08 AM EST | Fact-checked by Frank Bass

Key Points

Aim for 25+ stocks to reduce risk by preventing over-reliance on one company.
Evaluate whether to deepen or spread investments based on your risk tolerance.
Large stock portfolios offer higher diversification, though they may be harder to manage.

How many stocks do you really need in your portfolio? Well, there's no right or wrong answer to this question; there are some good ways to arrive at a number that's right for you. Now, before opening up a new brokerage account, let's try to answer the question of how many stocks you should own.

Loading paragraph...

Banner that reads "How Many Stocks Should You Own?" — Image source: The Motley Fool.

Loading image...

Loading paragraph...

Loading pitch...

Loading paragraph...

Portfolio Size	Advantages	Disadvantages

Small (few stocks in your portfolio)	Outperforming stocks can have a greater impact on your portfolio's value. Your best ideas are more likely to be prominently featured. Administratively easier to manage.	Lack of diversification creates potential for severe losses in your portfolio's value. Increased company-specific, sector, and geographic risk. Fewer opportunities to capture stock appreciation upside.
Large (many stocks in your portfolio)	High diversification reduces risks, including company-specific and sector risks. Relative protection against large losses. Potential opportunities for tax-loss harvesting.	Can be cumbersome to manage. Making many stock purchases can be costly, depending on your broker. Requires more time and energy to maintain.

Loading table...

Loading paragraph...

Related investing topics

Loading paragraph...

Best ETFs for Beginners and How to Invest

Exchange-traded funds let an investor buy lots of stocks and bonds at once.

How to Invest in Vanguard S&P 500 ETF (VOO)

You don't have to buy a whole share -- fractional shares let investors just buy a piece.

How to Research Stocks

Good research can help investors find the best companies to invest in.

Selling Stock: Are There Tax Penalties on Capital Gains?

Selling stock can mean capital gains tax. What is it, and how do you minimize it?

Loading hub_pages...

Loading paragraph...

Loading pitch...

About the Author

Rachel Warren is a contributing Motley Fool stock market analyst covering pharmaceuticals, biotechnology, medical devices, information technology, and consumer goods. Prior to The Motley Fool, Rachel was a paralegal and legal administrator. She holds a bachelor’s degree in paralegal studies from Liberty University School of Law.

TMFRachelW

The Motley Fool has a disclosure policy.