Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
I think they mostly do so badly because they try to be too smart and pick speculative companies.

With regards to your suggestion, I think 15 companies is too many. Statisticly, when you get to abour 10 companies (I might be wrong here, but it is definitely no more than 12) the company specific risk of a portfolio is reduced to a level where there is no need to diversify further. By doing so you are likely to hurt your returns.

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.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.