What do you guys think about Cramer's 10 stock rule. Basically he argues that you should never have less than five stock in your portfolio because you won't be diversified, but you also shouldn't have more than 10 because it doing due diligence becomes overly burdensome.
I'm putting together my wish list, and I have a very hard time narrowing it down so much. Part of me wants to cluster companies. For example, I like both Google and Facebook, but their business models are so similar, I want to give each a 1/2 allocation and count the two companies as one of my ten. Same thing with pharma. I want to buy three names and count it as my pharma holding.
And then part of me wants to just make my own etf and hold 60 different names.
Thoughts?
Submitted June 22, 2017 at 12:26PM by bodhibob http://ift.tt/2suBX1O
