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Number of stocks to own -/- blend to start reasearch with.

I work as Systems Administrator for my day job. I enjoy working the stock market. I do not like to give financial advice. I prefer to be a “data provider.” What this means is that you need to do your own homework. If you want to share ideas on this site, great!

This morning I did some go Googling on how many stocks to own in a portfolio. Personally, I don’t know. For the most part, it has been a “touchy feely thing” for me. Currently, my portfolio only has 9 stocks.

First: Number of stocks to own.

Elann proposes

number of stocks = 5 * log(n)
where n = the portfolio value in thousands of dollars

The above is a rule of thumb only.

Warren Buffet states 5 to 6 per million.

Ken Little gives a very traditional view: http://stocks.about.com/od/investingstrategies/a/Howmany022105.htm

This screen following was developed by tpoto. I think is a good starting point for researching your own portfolio:

YLDEARNYEAR 1-5, sell below 10
H52EarnPS 1-5, sell below 10
Screamers 1-5, sell below 10
LOWPE_ZLTD 1-5, sell below 10

http://www.backtest.org/BL(HD(LOWPE_ZLTD)15s10)p1(HD(H52EarnPS)15s10)p1(HD(Screamers)15s10)p1(HD(YLDEARNYEAR)15s10)p1

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