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Author: Borisincincy Three stars, 500 posts Old School Fool Ticker Guide Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 5162  
Subject: Re: No more than 5% in one stock? Date: 12/24/2009 11:43 AM
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I guess I don't have a specified number range of companies I try to target as "in my best interest" meaning focused enough to maximize my return and diverse enough to provide some protection from the unforeseen.

For me, it really depends on the companies I am in at the time and how comfortable I am with each of them individually and as a group.

As an example, if I were to be heavily tilted toward Blue Chips and/or quality dividend payers, I may well be comfortable with as few as 5 or so. If I want to be a bit more on the high reward / higher risk side I look to spread out that risk over more companies. Higher the risk, the more diverse.

Currently I am sitting at 14 companies, and while many of those are on the higher risk side, I feel very comfortable that I am aware of what may happen to these companies if something doesn't go according to hoyle and am prepared to accept that risk.

I also have to ability to watch each of them every day and multiple times a day. Thats the best I can expect from myself. Of course that is no guarantee that something won't occur after hours or pop up on the screen without warning. By my definition, thats why I see them as higher risk.

Mathematically I would guess there is a correct answer to this question, but for me its a very personal choice that has to match the individual.



Boris
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