![]() ![]() I was thinking of trying the Motley Fool. ![]() So what's the harm, then, if one wants to play around with individual stocks?Ĭan we please stick to the question at hand? My understanding is that the reduction in volatility that comes from diversification is asymptotic at somewhere around 10-15 stocks - you don't need to own the entire Russell 3000 to have adequate diversification. not all tech stocks), the expected result would be no worse than 100% passive indexing. If individual stocks represent a small portion of a portfolio, and there is a sufficient number of individual stocks for adequate diversification, and these stocks are in different sectors (i.e. Rather, the approach I'm considering is to use these newsletters as a starting point and perform my own due diligence in researching companies. I'm not suggesting that anyone go out and buy all of the stocks a newsletter suggests. Have either of you given much effort to investing in single stocks? Might as well just watch Jim Cramer and get your bad advice free. With that in mind, does anyone else here invest in single stocks on occasion? If so, what resources do you use? I was thinking of trying the Motley Fool.īut, then again, I have a gut feeling that there is research that is just as good out there for free, or at least comparable research at a better price. So it's important to stay diversified in multiple stocks and risk neither too much nor too little with individual stocks, and things will work out okay in the end. ![]() On the other hand, I have had some close to 0-baggers (*cough* Fitbit *cough*) where I lost nearly all that was gambled. Unfortunately I only risked 0.2% of my savings on the 14-bagger but I was nevertheless impressed with the results. I've had some 4-baggers, some 8-baggers, even a 14-bagger. However, I enjoy *gambling* (not investing) a small portion of my portfolio into individual stocks, every once in awhile. Most of my portfolio is invested in passive index funds and I believe that this the emphasis of this forum.īelieve me, I am a firm believer in the weak efficient market hypothesis and I don't have any belief that I can consistently outperform the market portfolio on a risk-adjusted basis. Maybe I'll move it if I don't get any responses here. Not sure if this belongs in this forum, or in personal investments. ![]()
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