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Too many eggs in 1 basket? diversify whereas proudly owning genuine just a few stocks

Tech stocks on demonstrate at the Nasdaq.

Peter Kramer | CNBC

Right here’s our Club Mailbag e-mail [email protected] — so you ship your questions about to Jim Cramer and his team of analysts. We are able to now not provide internal most investing advice. We can most efficient consider extra fashioned questions about the investment task or stocks within the portfolio or connected industries.

This week’s ask: I thought Jim talked about having round 5 stocks in a portfolio and not utilizing a extra than a 5% maintaining in each and every inventory. But even as you most efficient have 5 corporations, the numbers would dictate $100,000 or $200,000 in each and every inventory, respectively, if you contain $500,000 or $1 million of discretionary money to make investments.  That is a lot of eggs in just a few stocks, nonetheless that you can’t address tracking extra than 5 stocks. Thanks prematurely for the clarification. — Ramon

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