Message Font: Serif | Sans-Serif
No. of Recommendations: 1
How do you make the determination that you have enough different stocks (and/or funds)? Every time that the cash account in my 401k reaches $5k, I can buy another great stock, but I don’t want to end up with a hundred stocks whose returns end up approximating an index fund. (there are much easier ways to achieve the same results.)

I’m actually satisfied with my mutual fund portfolio. I own the exact funds that I want to own spread across a variety of sectors / types. Some funds are receiving ongoing contributions from my current 401k plan while others (in my IRA) only receive dividend reinvestment or lump sum contributions if I have the cash for an annual IRA contribution.

But I’m confused about where to draw the line with stocks. On one hand, I don’t want to end up with a virtual index fund. With a dozen stocks so far, I don’t believe I’m there yet, but is there any method of determining when you should stop buying more companies? (and instead just add more shares to the existing holdings)

I realize that there is no ‘rule’ for this, but I’m curious how other people make this determination.
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.