Forget Picking One Winner: Portfolio Diversification Is the Real Edge, and the Stock Advisor Scorecard Proves It
Motley Fool recommends that investors own 50 stocks for diversification, with results to back that up.
Overview
The Motley Fool Stock Advisor has rewarded subscribers who followed its monthly selections with a 950% return between Feb. 2002 and Sept. 14, 2026. As The Motley Fool states, "the strategy is built for patient investors willing to own a diversified portfolio of 50+ picks, not for short-term traders chasing quick gains." The size of the portfolio is no accident; diversification is a key part of the investment approach. You can easily put diversification to work for your portfolio regardless of your investment approach. Here's what you need to know.
The folksy example of diversification is not putting all of your eggs into one basket. If you have just one basket and that basket falls, all of your eggs break. If you have multiple baskets and one falls, you still have plenty of eggs to eat. In the investment world, that example translates to buying multiple stocks. This way, no single company can destroy your portfolio if something goes wrong. The Motley Fool recommends 50 stocks to have a well-diversified portfolio.
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Originally published at www.fool.com.