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"Can a person have too many different stocks? What's a good number? If I were to get a $2000 bonus, should I buy more shares of stocks I already own or should buy new recommended stocks?"


Generally, a person should understand how any company whose stock you own generates earnings
and what risks are involved in that company. As such, there is a limit to how much you
can follow. Reading and understanding company literature can take a large amount of time -
add to that market and research which can become quite technical - and you find difficulty
in regularly following multiple industries or markets. Add in foreign businesses and you
find yourself in the midst of a thundering herd of bison with what might be lions,
hyenas or deer running just over the rise or in a dip.

Also, the more stocks you hold a position in, the closer you come to this or that
ETF or mutual fund or average - and the less benefit you see from an individual company.

Enjoy the learning experience.
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