Should I buy one share per stock or buy a few shares of one stock?

Asked 3 years ago

I’m new to stocks and would like some advice on what to do. I have a general idea of what I want to invest in and can only invest from paycheck to paycheck. Which of the following is the most profitable option: 1.) Would it be better to buy one share per stock and diversify the stock I own or 2.) Do I buy a few shares of one stock?

Arthur Nwosu

Saturday, April 24, 2021

If you have the proper amount for investing, it is actually better and safer to diversify you stock buying.

This helps you to cushion and cover losses. If say you have a portfolio of about five assets and two assets are under-performing while the others are making you decent return.

Those three well performing assets allow you to break even or stay profitable even with the two under-performing assets.

Even when those three assets do not cover those under-performing, to a large extent, it reduces the size of your loss exposure by a large degree.



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