How many shares should I own?

[Emilio Estavez]

Hello, I would like to know the optimal amount of shares which I should own.

[Rishabh Tyagi]

That depends on four things:

- Your investment capital: How much money do you have?

- What are your profit expectations? That would help you judge your capital, whether it's sufficient or not.

- How big is the opportunity?

If your capital is small and the opportunity is not that huge, you should either wait for a better trade or not invest more than 20-30% of your capital.

If you are getting an industry leader value stock at a very cheap valuation, you should go in with 60-70% of your capital.

- Timing the stock

Wall Street is very clear on this: 'Never time the markets.' However, we should have some idea by analyzing the news, other stocks, overall market sentiment to help get an idea on when the stock can achieve the desired returns. Once invested, your money gets blocked, which means you can miss out on better opportunities in the future.

[Ezio Aurelio]

Hi, thank you for your question! 

There is no specific answer to this question because every stock and share is different. When owning less than 10 stocks, the risk is increased, because too much capital is concentrated on a small number of stocks, unless you have diversified your portfolio and acquired a smaller stake in a lot of companies. 

All in all, it depends what type of investor you are - long term or short term, and what is the size of the capital you are looking to invest. 
 

[Ulrich Meyer]

Hello, thank you for asking! 

The number of shares that should be owned depends on the type of investment that you are making, in some lesser number is advised, in others a larger one. The ideal number of investments varies from time to time, from country to country, it depends on the time span in which you wish to turn a profit and many other reasons.

Investors usually buy a larger number of various stocks, in order to minimize the risk of incurring losses, they do not only buy different types of stocks, but they switch and invest in different types of industries. So, if one of those industries is experiencing a downturn, they can rely on others.

Researches have shown that by doing this diversification, investors are able to reduce the risk near zero, even in case of economic recession, and other unforeseen events. They always opt in favor of lesser returns and lesser risks, than for greater returns and greater risk.

The average number of stocks owned by a single investor is around 15-20 different types of stocks, while in the US this average climbs up to 20-30. It is important to mention, the higher the number of stocks owned, the harder it gets to keep track of them, and predict their movements in the future.

An optimal solution is an average number, which allows you to keep good management of your investments, and make sure that the risk is low, and returns are as high as possible.
 

[James Byrnes]

Hi, thanks for asking!

 Some investors tend to diversify their investments by owning a large number of shares of different companies. According to some estimates, the U.S.-based investors hold around 20 to 30 stocks in their portfolio.

[Zeynep Tufekcioglu]

Hello, thank you for your question! 

This question varies from person to person, and also depends on the level of their expertise and other factors. Let’s assume that a person is a beginner. 

Before thinking of investing, it is necessary to have a good financial status, without any credit card debts with high interest, or any other kind of debt. Next thing is to have an emergency fund of approximately $10,000 which will be used as compensation if some of your investments prove to be wrong and start losing value. 

Third, you should dedicate at least 10% of your profits to your retirement fund, and this fund should be untouchable and only available to you in your later years. Last but not least, you need to be patient, and be prepared to leave your stocks untouched for about 5-10 years, in order for them to gain value, and offer profit to your investment.

It is advised to have at least 10 different types of stocks in your portfolio, which will offer increasing return rates and payout increasing dividends every single year. This is a road to a healthy and successful brokering business that will guarantee you a stable and prosperous life.
 

[Adam Hasden]

All in all, it depends what type of investor you are - long term or short term, and what is the size of the capital you are looking to invest. 

[Coleman720]

In my investment portfolio, I prefer to diversify and include cryptocurrencies. Recently, I've allocated 10-15% of my bank to this emerging asset class. To streamline my cryptocurrency experience, I rely on OWNR Wallet. OWNR is a multifunctional and secure virtual wallet app that offers a range of features. It allows me to store, exchange, receive, and send 9 different coins, manage ERC-20 tokens, monitor BTC price spikes, and even buy crypto and virtual currencies with a card. With OWNR Wallet, I have all my cryptocurrency needs covered in one place, while ensuring the highest security standards.