I own stocks in 42 different companies, planing for long term investment. What is your thoughts ?
I have been in the stock market for the last 5-7 years. I started a new portfolio 2 months ago and my plan is buy and hold like literally I have no plan to sell anytime soon unless something major happens.
Just buy good companies and hold as long as possible for years.
So to avoid taking too much risk and avoid fluctuation in the portfolio, I invest in 42 different companies.
I do have stop loss that’s far from current prices based on technical analysis, major trends, and risk tolerance.
I am somewhat comfortable managing my portfolio with this many companies.
My question is, is it too much diversification or just enough ?