The Motley Fool Discussion Boards

Previous Page

Investing Strategies / Retirement Investing


Subject:  New Roth-- How to diversify? Date:  1/3/2001  9:10 AM
Author:  Garp15 Number:  26924 of 107495

Okay, I started my Roth account one year ago. Put the $2000 in for 1999. I have added another $1000 for last year, so I still have another $1000 to contribute.

I bought only 2 stocks, one a tech stock, another was Home Depot. Of course, like many others, I've taken a couple torpedos amidships and am listing badly. But I'm still afloat.

My biggest question is how to diversify when you are just starting in the Roth. Since you can only contribute $2000 annually, it doesn't give you much room to operate. Assume I'm buying good companies, which is the better: buying stock in 10 companies and getting only a few shares of each, or, buying shares in 2-4 companies, and getting more shares? Remember, these are all good companies.

Try as I might, I haven't been able to find a satisfactory answer to this question. Once the Roth account increases (Lord I hope so) then the question is easier to answer.

Thanks for the assistance!

Copyright 1996-2022 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us