Building a sensible portfolio: How many stocks are enough? Explained

Investors often fall into extremes with stock portfolios, either too concentrated or overly diversified. A balanced approach, typically 10-20 stocks, is recommended. Key to success is sensible position sizing, avoiding tiny holdings, and ensuring sector diversification to mitigate risks and enhance overall portfolio performance.

Building a sensible portfolio: How many stocks are enough? Explained
Investors often fall into extremes with stock portfolios, either too concentrated or overly diversified. A balanced approach, typically 10-20 stocks, is recommended. Key to success is sensible position sizing, avoiding tiny holdings, and ensuring sector diversification to mitigate risks and enhance overall portfolio performance.