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.
The Motley Fool's Stock Advisor has yielded an impressive 950% return for subscribers who adhered to its monthly stock selections since February 2002, up until September 14, 2026. This investment strategy is designed for investors who are patient and willing to hold a diversified portfolio consisting of 50 or more stocks, rather than for short-term traders chasing rapid profits.
The significance of this diversification aspect cannot be overstated. It serves as a protective measure against potential losses, similar to not putting all your eggs in one basket. If a single stock were to underperform or even fail, the impact on the overall portfolio would be minimized, thanks to the presence of other stocks that could potentially offset the losses. According to the Motley Fool, a well-diversified portfolio should consist of 50 stocks.
The investment guru recommends having a portfolio of this size to reap the benefits of diversification.
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