5-10-15-20?
My brokerage account limits me to 18, but that number is so high because I have looked into hundreds, if not thousands, of firms, and I truly like these 18. Naturally, this makes it harder to stay up to date with DD. what are your opinions?
Stocks? There is no limit many would even argue that the more, the better, or none at all.
ETFs? Personally, I find it hard to justify more than a few since the differences are usually minimal and unpredictable in terms of being favorable.
You also run into the issue of managing complexity. A simple 70/30 total stock/total bond split is easy to manage and forget about. But as you add more, you start second-guessing whether it’s the right mix, if the ratios need adjusting, or if something is performing as expected. I have found that the simpler I keep things, the easier they are to maintain, which helps me stay consistent in the long run.
Difficult to defend more than a few etfs
Actually relies on how specific those etfs are.
the entire market? S&P500 type of deal, ya, no more than a couple…
But if you invest in etfs tailored to certain industries, such as QQQ for technology, UCITS for US banks, XOP for oil and gas, RTH for US retail, etc., you can profit from energy, health, real estate, etc.
Without any overlap, you can quickly accumulate 20 or more.
I like VOO, but that’s not saying it’s the right choice. Simply put, investing in an industry rather than a few firms that are part of it might make it much easier to profit if you believe it will outperform.
It is more about what you stand to earn than it is about any particular overlap. To beat the overall market, your QQQ/XOP/RTH combination is a coin flip; the more diversified it is, the less likely it is that there will be a big difference in either direction. However, holding these kinds of ETFs is frequently more expensive, and you have the previously mentioned complexity issue. Thus, for little to nothing, you are spending more and worrying more.
I know it is not realistically going to outperform the market over my lifetime, but my wife and I hold around 25-30 stocks and 4-5 ETFs, with varying weights. My wife is a fan of Etsy and owns 100 shares. It’s not the best stock, but it makes her happy, and it does not harm our long-term outlook our portfolio is currently around $2 million.
I also have NVIDIA (NVDA), which has increased by 2000%. I’m not actively buying more NVDA or Etsy; it’s more like, “Hey, we have $25,000—where should we invest it?” Typically, we put $20,000 into the more stable and responsible ETFs, and then we allocate $5,000 to stocks we like. We do this four times a year with our quarterly bonus money.
Hey, you guys are doing really well.
Yes, it’s best to get started as soon as possible. In my 20s, I think I preferred owning equities over exchange-traded funds (ETFs). I was doing 50% stocks and 50% ETF’s. I am currently in my early 30s and invest 85% in ETFs and 15% in stocks.
If you have a risk tolerance and aren’t buying after a significant price increase or selling when the stocks decline, the stocks are far more enjoyable.
I prefer to hold 5-10 stocks, depending on the market conditions. I have some core positions that I haven’t touched in years, and I will add a few when companies become undervalued. Personally, I’d rather concentrate on fewer stocks that I have high conviction in than spread my investments too thin on lower conviction plays.
I don’t have any ETFs at the moment; I’m fully invested in FXAIX for my Roth IRA and currently hold four different stocks. I’m open to adding more if I come across companies I like.
Depending on your management style and available time. In my own portfolio, I have 9–12 different equities, with 3–4 long-, medium-, and short-term investments each.
I have seven separate ETFS accounts. Some are preferable to taxable accounts that are tax-friendly. Less than that, perhaps, but since cryptocurrency ETFs are still relatively new, I wanted to get in early.
I typically have around 26 stocks. The last few are often more speculative and carry very little weight in my portfolio. I always trim the losers and invest more in the winners, but I enjoy selecting companies that I believe have the potential to either skyrocket or make a comeback.