Tigran Ohanyan @ManukInvestor: "Dear investors, can anyone explain..."

Spain

Dear investors, can anyone explain this to me? Diversification is a key strategy in investment portfolios, spreading risk across different assets to mitigate potential losses. However, it's important to find a balance and not over-diversify. I find it perplexing when I see portfolios of people with over 50 stocks. In my own holdings, I've deliberately chosen 18 stocks, allowing me to understand and actively research each one. While diversification is important, there's a fine line, and over-diversifying seems more like a lack of focused strategy. There are studies stating that after including around 15 different stocks, the specific risk of bankruptcy significantly diminishes. Beyond this point, the remaining risks are predominantly global, such as wars or pandemics, so I have to ask again, why are there professional traders and investors that hold +50 stocks? $NSDQ100 $SPX500 $BTC $ETH $NVDA (NVIDIA Corporation) You can vote below what's your posture on this one:

Diversify diversify diversify!

100.00%

No to over-diversifying

100.00%