Part 1/9:
Understanding Portfolio Diversification: How Many Stocks Should You Own?
Investing entails navigating a myriad of strategies, particularly when it comes to determining the optimal number of positions one should hold in their investment portfolio. Rob, an investor concerned about potential dilution of his portfolio, poses a common dilemma: how to manage existing positions while capitalizing on new market opportunities. Should he adhere to a strict rule of never selling a stock before three years have passed, or should he be more flexible and take advantage of opportunities as they arise? The overarching question remains: what is the ideal number of stocks to hold in a portfolio?