How many is enough?

[bean]

Varies but currently 100% in back wednesday only three stocks gold silver and uraniunm cto/mmn/mmno/bmn but also have silver bullion which is long term (can't store uranium or oil). But everything I invest in is mainly commodities more risk but more gains.
Towards retirement will look at stocks which pay dividends and are not as volitile and will diversify.

 

[barnz2k]

I have maybe 15-20 stocks but decent holdings (90% of value) in just 6: AGS BMN ADI EKA MGX INL, lots of smaller holdings in long shots...each to his own as to what is right, no question I could be a lot more diversified but I am comfortable taking some reasonable risk

kind of like throwing a bet on the longshot in a horse race? Small amount and a less likely chance, but if it comes through would be great?

I got about 6 now... and only really plan in longterm for now. I dont know enough to keep trading in and out, and as long as they go up each year its better than my bank interest getting taken at tax time.

 

[MichaelD]

The correct number is 18 which I believe is the efficient frontier.

If I recall correctly from A Random Walk Down Wall Street, this proffered up similar academic research, although I think they concluded that the optimum number of positions was more like 15, not 18

This work does, however, assume that a diversified buy and hold strategy has been adopted as I understand it, so I'm not convinced that we are able to extrapolate this to an active trader.