Why is it better to own lots of diversified stocks over a specific set of target stocks?
March 12th, 2008KnottedBrain asked:
Alot of people say that you should have a diversified portfolio. Why can’t I just choose the stocks which I feel have potential for growth? That might narrow my choices to a few sectors, though. If I buy too many stocks, my gains will be lost by too much other stuff going on.
Alot of people say that you should have a diversified portfolio. Why can’t I just choose the stocks which I feel have potential for growth? That might narrow my choices to a few sectors, though. If I buy too many stocks, my gains will be lost by too much other stuff going on.