Part 5/8:
Another pivotal question arose regarding the allocation of funds when investing a fixed amount monthly. Nathan Dewinkle inquired about whether to add to existing positions or develop new ones with his investments. Matt Trogdon advocated for diversification, especially for newer investors. Spreading investments across several stocks, rather than concentrating funds on a few companies, mitigates risks and provides a broader market understanding.
Additionally, the “Gardner/Kretzmann Continuum” emerges as a fun guideline suggesting that the number of stocks owned should ideally meet or exceed the investor's age. This encourages young investors to diversify actively.