Even legendary investors like Warren Buffett say you only need a few great investment ideas. It's true that the more stocks you own, the lower the risk of your portfolio. But only to a point. Studies have shown that once you get to about 20 stocks, adding more doesn't significantly reduce the risk. Carlson says about 15 to 20 stocks is a good number and aggressive investors say you can diversify with even fewer.
Experts say it's important to be disciplined.
Once your portfolio reaches an appropriate number of stocks, you should sell a stock every time you want to buy one. That will keep your portfolio from growing too large and encourage you to be a more selective stock picker. The absolute privacy of any and all information provided by the individual client or subscriber is guaranteed.