Sometimes for new investors, not enough capital to diversify
Say $30,000 hoot 3 stocks at 10k each
If one of them is swiber then 33% of portfolio wiped off
Thats why for those new investors i will always advise to use sti etf as your base first
Sti etf cannot die one, 30 blue chips inside!!!
When portfolio hit bigger scale like 50k or 100k then hold 10 stocks of 5k each or 10 stocks of 10k each is fine
I would say 10 is the min number of stocks to call a portfolio diversify
In portfolio theory need 30 stocks or more to avoid non systematic risk
However for me i prefer a focused approach to beat the market so for my 300k portfolio i still focus on 10 stocks
Even if my portfolio 100k or 500k or 5 mil, i still go for 10 stocks only
If 1 ship down 9 ships will still win me the war