“Many investors over-diversify. The best results are usually achieved through concentration, by putting your eggs in a few baskets that you know well and watching them carefully.”
—WILLIAM J. O’NEIL, IBD CHAIRMAN AND FOUNDER
There is no magic formula that determines exactly how many stocks you should own. But here are some basic guidelines to keep in mind.
Don’t own more stocks than you can handle properly and watch carefully.
I remember talking with an ...