Diversification is not an end in itself, but rather a way to mitigate portfolio risk. So the question of "How many stocks should I own?" will be different for everyone … but still, there are some good principles to think about.
Eddy Elfenbein, who writes about investing at Crossing Wall Street, is known for being a buy-and-hold investor — CNNMoney named him "the best buy-and-hold blogger" on the Web — and on his site, he has a public portfolio of 20 stocks. Last month, during an hourlong interview in Washington, D.C., I asked him whether he thought 20 stocks made for a diversified portfolio. Watch the following video for our exchange.
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A version of this article, written by Brian Richards, originally appeared on fool.com
