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When they recommend the 15 to 20 solid stocks in your portfolio, are they referring to just individual companies, or is it common to include some broad based index funds, such as the S&P 500 and others with the individual stocks? Or should index fund investing be done in another brokerage account?

The purpose of the 15-20 stocks (investments in companies is how I prefer to frame it) is to achieve diversity, so that if one company suffers a bad day (week, month, year) at the market, it only pulls down a portion of your portfolio and not a majority of it. An ETF or mutual fund can also accomplish that goal because they contain investments in multiple companies within a single investment vehicle.

But diversity in market sectors is also key, so that if all companies in a particular sector (gaming industry) experiences a downturn (Fortnite, anyone?) you still have investments in other market sectors that may remain stable or growing. And that's where mutual funds and ETFs can fall short, because they tend to follow themes, such as a tech ETF or real estate mutual fund.

Fuskie
Who thinks as long as you achieve a good level of diversity in your investments, the mixture of funds, ETFs and individual equities is a question of personal comfort...

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Disclaimer: This post is non-professional and should not be construed as direct, individual or accurate advice
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