How many stocks should you own?

An individual investor with even a large portfolio of a million dollars needs not more than six or seven well selected securities.

Broad diversification is hedge for lack of knowledge or ignorance.

Most people with $20,000 to $100,000 to invest should consider limiting themselves to four or five carefully chosen stocks.

The winning investor's objective should be to have one or two big winners rather than dozens of very small profits.

It is much better to have a number of small losses and a few very big profits.

One way to manoeuvre your portfolio toward concentrated position is to follow up and make one or two smaller additional buys in stocks that have advanced 2%to 3% or so above your original or last purchase price.

At the same time,sell and eliminate those start to show losses, before they become big losses.