Stock Investing Tutorial 4/6

Why your own stock portfolio is as safe as an index fund

Can my stock investing be safe like an index fund? The advantage of index funds is that they are diversified, meaning that they hold a number of different stocks. This gives you diversification so that not all your eggs are in one basket. But, just how many eggs do you need to be diversified?

Research shows that with 20 to 30 stocks, you have all the diversification benefits you can get. You get the most diversification when you go from stock #1 to stock #2. You get less when you go from stock #10 to stock #11. Furthermore, if you buy large stocks, you already have some diversification, because those companies are involved in many businesses in different markets.

Watch the video to learn more.

Watch the next video

Get the Obermatt Stock Update faster!

Get our free newsletter (see sample)

Entire stock picking playlist

Subscribe to our Youtube channel

Follow us on Twitter, Facebook, LinkedIn

Find out more about stock investing

Check out our website for more information


Disclaimer: Obermatt provides data to the best of our knowledge and belief.This post expresses the views of the author as of the date indicated and the information contained herein will not be updated. Obermatt claims no responsibility for the data presented or for any resulting implications of data usage, according to our disclaimer and liability statements.