Good advice. :)
"3-10 positions" is also IMHO a good advice when you want to show someone what investing is about and how it works (or doesn't). I.e. your kids, relatives, friends, enemies... ;)
1 position is too much a dice roll. It either succeeds and then the person thinks that it's very easy or it fails and the person thinks that investing is rigged/foolish/does not work, etc.
>10 positions and they are lost in too many companies, news, price swings, etc. Too overwhelming, boring, etc.
3-7 (OK, I'd say 7, not 10 ;)) - prices fluctuate. Some go up, some come down. It's potentially interesting and not overwhelming. Smart people start learning from there. Not so smart ones provide you with the humor value in their explanations or drama. :) |
