New stocks bring new risks. All that said, I believe that only if the opportunities presented by new purchases are truly recognized as greater than the opportunities offered by current holdings does investing in additional companies make sense. That, or we should only buy more companies if we're concerned about our current exposure to risk and we want to dilute that risk and accept the added costs and new risks of doing so. Overall, we seek simplicity. In our case, owning a small handful of companies that we truly understand, even only four companies if it comes to that, should do the trick.
Many people do.
This leads again to our high-growth study . If we buy a high-growth company that does not offer a Drip, we're at the whim of brokerage costs, which change. Meanwhile, we suggested another cut from the list and we have an ongoing discussion taking place on the Drip Companies board. The Motley Fool has a full disclosure policy . Dividends have been added to the total return of the index.