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The Pocket Idiot's Guide™ To Direct Stock Investing by Lita Epstein, Douglas Gerlach

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Managing Your Portfolio

You don’t want to put all your eggs in one basket. It’s always good to diversify and hold shares in more than one industry. Ultimately, you may want to pick two or three companies in each of the industries you choose to add to your portfolio.
Portfolio managers generally believe that a well-diversified portfolio includes 10 to 20 stocks in several different industries. But don’t feel pressured to buy that many stocks up front. Build your portfolio slowly and add stocks as you can afford to do so.
Some industries go up at times that others go down, so by holding a well-diversified group of stocks, you have a much better chance of riding out any economic storm.

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