How Many Stocks Should You Own?

I recently read a blog post on investment basecamp blog that addressed this question. We all know and have heard diversification is the best method to minimize risk in the stock market. Some say diversify across all asset classes including commodities and currencies. According to the basecamp article the academics say that 90% of maximum diversity is obtained by owning a portfolio of 12- 18 stocks. Benjamin Graham recommend 5-25 stocks with each company being large, prominent and conservatively financed. John Keynes recommends 3-5 stocks that you know well and in the management of which one thoroughly believes. Warren Buffett says 5 to 10 stocks If you are able to understand business economics and able to find sensibly-priced companies that possess important long-term competitive advantages. If not Buffett is actually a big fan of indexing and Seth Klarman recommends 10 to 20 stocks that you know very well.
Continue reading “How Many Stocks Should You Own?”

Cryptocurrency For The FIRE Minded Investor

I know cryptocurrency is a very controversial topic to discuss as it pertains to investing. It seems to have been embraced more by the millennial and younger generations and shunned by generation X and older. Some would even dare to say it has no right to be discussed in the same light with financial independence, but as I discussed in my pervious post on investment strategies, I believe that 5 – 10% of your portfolio should be in risky assets of your choosing.

Continue reading “Cryptocurrency For The FIRE Minded Investor”

The Perils of Micro Investing

Micro Investing is a great way to gain exposure to the stock market with as little as $1. Options for micro investing include acorn, stash, stockpile, M1 Finance and many more. You can use these websites and applications to invest in individual stocks or ETF’s. Some charge fees as little as 1- 2$ a month or a percentage of your portfolio and others like M1 Finance currently have no fees, but they do offer other products that they use to make money like loans and high interest rate savings and checking accounts.

Continue reading “The Perils of Micro Investing”