I'm wondering if having 30 stocks in my portfolio is too much. I want to know if this number of stocks is considered excessive or if it's a reasonable amount for diversification.
6 answers
HanjiArtistryCraftsmanship
Wed Dec 04 2024
According to his conclusions, a well-diversified portfolio of randomly selected stocks should contain at least 30 stocks to ensure effective diversification.
KimchiQueen
Wed Dec 04 2024
This finding contradicted previous studies and challenged the widely held belief at that time.
Daniele
Wed Dec 04 2024
The earlier study and the commonly accepted notion suggested that the benefits of diversification could be achieved with a smaller number of stocks.
CryptoLodestar
Wed Dec 04 2024
Meir Statman's research in "In How Many Stocks Make a Diversified Portfolio?" revealed a significant finding regarding portfolio diversification.
Giulia
Wed Dec 04 2024
Statman's research indicated that a larger number of stocks was necessary to truly mitigate risk and enhance portfolio performance.