How many different companies should I be holding shares in?
I’ve seen lots of different recommendations: Five, Six, Nine, Ten. How many will I be investing in? Good question. The theory of holding a smaller amount of shares is that you care about them more, personally I don’t agree with this statement. By holding lets say for arguments sake 5 I don’t see this as diverse enough. To make sure that your portfolio is diverse it means investing in shares abroad and in different sectors. With over 3000 just in the US how can 5 be enough to be diverse!
Another reason in which I don’t agree with the theory that you ‘care’ is that your shares aren’t your friends they are making you money therefore there should be next to none emotional attachment.
The next thing that I will be looking at to becoming more diverse is investing abroad, however I feel that there is so much in the FTSE to invest in I haven’t had any interest in looking yet!
Sorry that it was such a short one – haven’t been feeling great the last week. Hopefully will be producing more content in the weeks to come. Happy Investing!