How Many Stocks Should You Own?

[gautam]

Another benefit is one can go across countries, and not limited to Singapore, and take advantage of price inefficiencies in other countries by using a statistical quantitative approach. The focused investors can only look at Singapore (home ground) and loses the advantage of picking the low hanging fruits in other countries! Unknown to a lot of people, it is not difficult to achieve long term returns of 20% p.a. using this approach - but without the risks of concentration.

So far I have not venture out of Spore shore. I personally think that if I can not make it in home ground, what chance have I got if I go overseas where everything is unfamiliar? Maybe I am KS, but I prefer to maintain my firepower in the place I am most familiar with. I do however have stocks that operate globally. This way, I have exposure to overseas opportunity without leaving shore.

I agree with Ben.

So far, I have not ventured overseas, though occasionally I do entertain some thoughts about it.

Its easier to do research and verify a lot things physically for those locally listed companies, though I agree that a some of them has overseas business dealings. But overall, I can get a rough feel of things, which I think is important.

For example, if I want to invest in supermarket, I can take a walk at giant or sheng siong and "feel" the human flow. And I want to know how a local property counter is doing, I can go to the showroom and feel the crowd. Of course, must co-relate with the relevant figures.

[wahkao]

I may own 1000 stocks but if another value stock just crawls by, I will still take the bait.
Therefore, there is no limit to how many stocks I will like to own.
And, I can kick any stock out anytime. Especially, a supervalue one pops up and I am running out of cash, I will clear some stocks from my portfolio to buy it.

A value stock is a value stock. What has it got to do with no. of stocks in your portfolio? In mathematical term, both events are almost orthogonal.

Theoretically it will work, but in practice, resources needed to filter the stock(s) to kick out from your portfolio. The work involved to filter 10 stocks, is vastly different from filtering 100 stocks, let alone filtering 1000 stocks.

just use excel sheet to filter, it only takes 10 seconds?