How Many Stocks Should You Own?

By Eric Cuka – Sep 12, 2022 at 9:00AM

NYSEMKT: VOO

Vanguard S&P 500 ETF

Market Cap

Today's Change

(-0.84%) -$3.84

Current Price

$455.10

Price as of April 19, 2024, 4:00 p.m. ET

How concentrated should your portfolio be? Let's consider the pros and cons of a diversified portfolio.

How many stocks should you have in your portfolio? This polarizing question always sparks debate. A simple way to add diversification is with an ETF such as the Vanguard S&P 500 ETF (VOO -0.84%), but at what cost? In the video below, I discuss the best number of stocks to buy for long-term investors. I also cover how to build a stock portfolio for new investors and provide examples.

*Stock prices used in the below video were during the trading day of September 9, 2022. The video was published on September 10, 2022.

Eric Cuka has positions in Tesla, Tractor Supply, and Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Berkshire Hathaway (B shares), Tesla, and Vanguard S&P 500 ETF. The Motley Fool recommends Tractor Supply and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy. Eric is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.