How Many Stocks Should Be In Your Portfolio? (Buffett, Lynch, Pabrai Explain)

Peter Lynch, Warren Buffett and Mohnish Pabrai are all against diversification. But are there times where it makes sense? And how many stocks should we hold in our stock portfolio anyway?

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DISCLAIMER:
Neither New Money or Brandon van der Kolk are financial advisers. The information provided in this video is for general information only and should not be taken as professional advice. There are risks involved with stock market investing and consumers should not act upon the content or information found here without first seeking advice from an accountant, financial planner, lawyer or other professional. Consumers should always research companies individually and define a strategy before making decisions. Brandon van der Kolk and New Money are not liable for any loss incurred, arising from the use of, or reliance on, the information provided by this video.

[maxpaju]

”Why would you put money into your 27th best idea?”

Love that.

[DandyFinance]

I love how Buffett says "Diversification is for lazy people and there is nothing wrong with that". Thanks for the video!

[exannuc]

"Don't put all your eggs in one basket"

Nice try, basket industry

[channelferrets]

My strategy:
- start with S&P500 ETF as it is pretty fool proof for any starter if you have the patience to not touch them
- through the years find stocks that you understand and buy them too
- get your portfolio in a 65% ETF/ 35% stocks balance
- hold

[wynandbritz]

%50 index, %50 individual stock, so far so good.

[tamarahudson]

Most people seek instant gratification, which usually doesn't go well. so set goals 1-2 years out instead months out, and you are likely to be much more satisfied with the results.

[mecaranger]

Its fascinating how Lynch had literally more than 1000 stocks in his fund and understood all of them well at the same time...

[arthurmorgan]

I’m ignorant and don’t know how to analyze businesses. I’ve learned I can’t beat the market, so I diversify, and the returns of an index fund are still really good.

[cheyenne]

Small investors like us cannot follow the method of the billionaires. They have insider information and direct influence on the company they invest in.

[benjamindavidson]

I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?

[sophiamiller]

When it comes to investment, diversification is key. That is why I have my interests set on key sectors based on performance and projected growth. They range from the EV sector, renewable energy, Tech and Health.

[jonmccormack]

Stock pickers recommend picking stocks, but probability shows even the pros rarely beat the index. How about some Jack Bogle interviews in the mix?

[morgjones]

I'd add that it's really not as easy as finding the "Perfect business" and ranking them. You'll have one with strong and consistent sales growth but poorer FCF growth, and one with less consistent sales growth but better FCF growth for example and at that moment in time they might be your two best options, now enlarge that a bit, all 10 of your options may be like this, or all 30, because there isn't one single company with the perfect balance sheet or we'd all be invested in it.

[MartinMcClellanGT]

Buffett himself owns about 20 companies with his company, so really the world has changed since that time, we do have many wonderful business at this age in time.

[financial.affairs]

Interesting theme. It's about how well you understand the industry your investing. Then you can decide in which stock to take

[harlow]

Stock market has always proved to remain a source of income for the majority of investors and traders

[jamescryptoguru]

We should be careful on money useage, if you are not spending to earn back, then stop spending.

[Ermz]

Love this. I'm relatively new to investing, but the common 'wisdom' of diversification always struck me as a great way to tread water. For the few good stocks you hold, the rest drag you back. In my initial tests, diversification always ended in a short term net loss, while taking the time, studying fundamentals and making deep, calculated investments has resulted in the big strategic wins.

It's certainly "to each their own", and some just want to hold SP500 for 20 years, and that's totally fine. But I want to read the public sentiment, study the fundamentals, track the trends and then lay my bet to test my knowledge of the world around me. That's half the fun.

[TimotheeReacts]

Love your vids, been watching for just a little bit, but hear you talk often about diversification. but i'd love to hear you talk more specifics, like to also diversify within different sectors (like not have 90% of your portfolio in tech)

[tgymartin]

Personally, I use a mixed approach. I have a small portion in ETFs, bonds, precious metals, and dividend yielding REITs. However, the bulk of my portfolio is in value stocks I love e.g. BABA. When the value stocks start tanking into an area of value, I can sell down my bonds, precious metals, or ETFs to raise cash. I sell put options on the individual stocks so I get paid for someone to force me to buy the stock. Every month, I just find something to passively invest into with a portion of my monthly income: bonds, ETFs, REITs, Gold etc.