Bulls came and stayed but some bears showed up as well. It appears the bears are back this morning
Will they remain?
🟥or 🟩?
Question:Question:
Tell me what your perfect number of equities an investor should have? Go all in on one stock or having a mix of a 100? Drop your guess and your perfect number of holdings for the zap bonus today
Bulls Win (🟩)
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It depends on your goals:
1 - 3 stocks: Yolo/Wealth Creation
10 - 20 stocks: Alpha Hunting
100+ stocks: Wealth Preservation
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It really depends on what kind of investor you are, short, medium, or long term.
Personally, I'm a long-term investor, and I think it's best to keep a small portfolio, maybe around five stocks. Those five companies will naturally benefit from short and medium term hype along the way. If things are going well, there's no real reason to sell.
I'm more into sector ETFs for the medium to long term. I don't have the time or the expertise to properly analyze individual companies.
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If you want 100 stocks, don't buy 100 stocks, buy an ETF.
Picking 100 individual equities manually is just an expensive hobby with extra tax headaches
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15 to 20 stocks is the golden range. Academically, you eliminate roughly 90% of unsystematic risk. Beyond that, you're just diluting your best ideas for negligible safety.
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Real conviction usually sits around 12 to 20 well researched companies across distinct sectors.
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Hold 1 broad market index fund (VT or VTI) with thousands of equities inside it and enjoy the peace of mind
🟩Concentration builds wealth, diversification preserves it. Choose more than 1 but limit it to 20 stocks.
🟩 1 stock is a casino trip. 100 stocks is an index fund with extra steps. 15 to 20 is investing
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1 stock is reckless, 100 is diversification.
12 to 15 is perfection.
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The optimal setup is an S&P 500 index fund for 80% of your capital, plus 3 to 5 individual high conviction picks/tickers for the other 20%.
Best of both worlds.
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If your 1st best idea and your 100th best idea get the same amount of capital, you don't actually have a strategy.
Focus on your top 10.
My perfect number is 25 holdings. Going all-in on 1 stock is way too risky, but holding 100 dilutes your gains and is impossible to track. Having exactly 20 to 25 stocks gives you full diversification across different industries while allowing your best picks to actually move the needle.
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Like your reply no down zap
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