Diversification is important. But I think there’s a point where too much diversification just waters down your best investments. If I really believe in companies like $JPM, $ENB, $NVDA, or ETFs like $SCHG, why would I keep adding weaker ideas just to own more things? More holdings doesn’t always mean a better portfolio. I personally only have 6 holdings mainly focused on tech which is “my idea” tech will win long term Sometimes it just means your winners have less impact. At what point does diversification become over diversification? How many holdings is too many ?
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10 Comments
Kyle Garrett@kgcottawa · 10h
Concentration builds wealth, diversification maintains it. People go too diversified right off the bat I find !
James @jdr18 · 8h
This is something im struggling with i own 20 holdings but I believe in all if them but it feels cluttered
Teresa @maria.mtg · 8h
I just buy ETFs and don’t think about it It’s great 👍🏽
Dany @blazingbruzer · 9h
I currently own 8 holdings for a bit more than 100 000$ I’ll add over time to those. I sure want more positions, but just buying 1-2 shares of different companies here and there dosent do it for me. I’ll Build my position and afterwards look for another. (Or if theres a great opportunity in one of my watchlist i might diverge from the main plan). Though, no right or wrong answers I think…dépends on what you like best for yourself.
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