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URL:  https://boards.fool.com/greetings-brent-and-welcome-you-asked-i-just-10326572.aspx

Subject:  Re: Roth dilema Date:  9/17/1998  5:05 PM
Author:  TMFPixy Number:  5483 of 98536

Greetings, Brent, and welcome. You asked:

I just opened my Roth IRA with my first $2000.00
I have chosen a Company to by that I am very excited about, I think it is a great Company and I think it will stay great for decades to come. My question is, should I invest all my $ into this one Company, or diversify with 2 companies. Any thoughts?


If you're confident about the company and are satisfied with the risk of having all your eggs in one basket, then $2K is not a large sum to worry about. It's also not a large enough sum to achieve true diversification in anything except a mutual fund, assuming diversification is a concern. If it is, then around Fooldom we'd say sock it away in a no-load S&P 500 index fund like Vanguard's until you can amass sufficient funds to attain the diversification you want in individual stocks. It's just personal, mind, but in stocks I want at least 10 different companies across multiple industries. And I think 20 is too many. The latter is more prone to match rather than beat the market.

Regards….Pixy

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