How many stocks should an invidual investor hold?
Should it be JUST one or five stocks, or stock indices, instead of 20 stocks or international indices?
That is, put everything in one basket, and watch that basket?
Stock best answer:
Answer by Hertha
You should own more than one stock basically because you own Microsoft, but it went down since Apple went up. So it would be wise to own Microsoft and Apple. You should not buy stock indices. Ex Dow Jones is based on large American companies, so if large American companies goes down, so will the indice. You probable would buy mutual funds unless you have fund manager capabilities and can pick your own stock to load a portfolio.
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