How Many Stocks Should I Buy? Investing for Beginners Series #11 david moadel
welcome to looking at the markets with David Modell this is another video in my
series investing for beginners where no question or topic is - beginner ish and
you should never feel afraid to ask questions even if they're basic
questions you should never feel embarrassed because I want you to start
off right in your investing journey today we're going to talk about how many
stocks you might want to think about owning I mean I cannot tell you what to
do or what not to do but I can tell you how many stocks I own when I'm investing
and if you have questions that are not answered by this video or if you want
more help or if you want some assistance in putting together your own investing
plan because you really want to have one you can email me at any time my email
address is right down below David Modell at gmail.com alright so how many stocks
well one thing that I won't do is buy just one or two stocks and put all of my
money into those one or two stocks because any company can go out of
business or have a lot of trouble any stock could go to zero or could be
delisted meaning taken off of the stock exchange it can happen
even really good companies can go out of business it it happens now when we buy
really great companies that makes it less likely that the company is going to
go out of business it makes it less likely that the stock is going to go to
zero or get delisted but still there's always that risk when we invest so let's
say imagine if you put all of your money into one stock one company and let's say
something happened there's always going to be bad news in the world and
something happened and that stock went down a lot the company's in trouble well
now your portfolio your account is in trouble
so you don't want that if you can help it I don't think you
want that happening to you and so in order to make your investing safer more
secure and to help us to sleep at night a little better because there's more
safety and security what we can do is instead of just putting all of our
capital all of our money into one company or one stock or one or two
companies or stocks you might want to consider putting smaller amounts of
money into many stocks all right so instead of a large of
amount of money in one stock how about smaller amounts of money in many stocks
and not just many stocks but many different stocks different types of
stocks that's called diversifying to have a diversified portfolio of stocks
means to have stocks not all in this not all of the same type
all right stocks of many different types for example if you if you owned some
stocks in the technology sector and a sector is just a type or area of stocks
that are similar to each other so if you had some technology stocks and some
energy company stocks and some retail sector stocks and whatever other types
of stocks and you had many different sectors or areas or types of stocks that
way even if an entire sector of the stock market all went down at the same
time you'd still be you'd still be ok you could still lose money but you
wouldn't lose as much so it wouldn't be as painful financially and emotionally
so that's what I prefer to do when I'm investing I like to have many stocks but
not just many stocks in the same sector but many different types of stocks
stocks in in multiple sectors and it doesn't just have to be stocks
perhaps you can have some gold some silver perhaps you can have oh I don't
know some crypto currencies or or or just regular currencies like the dollar
the yen the lira euro whatever it might be and that might be a more advanced
topic because we're just sticking to stocks right now but I'm just saying
that if you put all of your eggs into one basket as they say then you are at
risk but if you diversify you can actually you can possibly minimize your
risk depending on still depends on what you invest in but I prefer to invest in
great companies and many different types of companies so how many stocks will I
own when I'm investing many different ones instead of just one or two and many
different types all right so I hope I answered your question about how many
stocks I prefer to own and that can possibly influence you to think before
putting all of your eggs into one basket alright so if you'd like some help with
diversifying with choosing stocks stock selection is super-important how much to
allocate toward each stock toward each company that type of thing and putting
together a plan which you really need to have if you want some help with that you
can email me anytime my email address is right there it's down below in this
video it's David Modell at gmail.com and if you like this video please give it a
thumbs up on YouTube and leave a comment and subscribe to my youtube channel and
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financial educational videos that I put out alright this is looking at the
markets thank you so much for watching and listening and I'll talk to you again
soon
you