How many companies should you own in your portfolio and can you be TOO diversified?

In this video, I'll talk about diversification and how it impacts risk and your potential gains as an investor.

Yes, you can be too diversified, in that it will only give you average results, but it will also lower your risk. Being less diversified means that you could potentially have bigger gains, but the risk of bigger losses is also there.

So it's really all about balance and what your personal risk tolerance is, as well as how much time you have to invest.

So while there isn't an answer to how many companies you should hold in your portfolio, as each investor is different, it is important to think about it.

Happy investing.

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DISCLAIMER:
Investing carries risk.
The content in these videos is my opinion and is not intended to be substituted for your financial situation.
Please do your own due diligence and seek professional advice where necessary.