Am I insane foe wanting to invest in 50 different comapnies and 3 ETFs? Am I overdoing it? Or should i just choose sector ETFs instead of companies to reduce my list.Also how often should I invest per year to reduce overall commission costs? Quarterly? Is there a way on IBKR to place a basket order so I only pay for one trade across multiple stocks?
50 is too much, portfolio theory says around 20-30 before it's not worth it and I would lean towards the smaller number
>>61862099In general it's better to bet on something broader than something more specific. As long as the sector grows you'll grow but a company can easily fail even if the product or the sector is wanted. When I was younger I invested in Nikola because I thought I would be hedging against Tesla. Turns out the company was a mess and people don't care that they're sucked dry by Elon. I still believe EVs will be more important for long haul and business use.
>>61862144>I invested in Nikola because I thought I would be hedging against Tesla. Turns out the company was a mess and people don't care that they're sucked dry by Elonyou thought the ceo who would go on to lead tsla to a 20x was sucking they company dry so instead you put your money into an obvious scam whose CEO would go on to be arrested for securities and wire fraud? Where do you do your research, the daily show???
Translation: >PLEASE GOD STOP DUMPING MICROSOFT AHHHHHHHH
>>61862142Why?
>>61862099https://investcalc.github.io/
>>61862220>you thought the ceo who would go on to lead tsla to a 20x was sucking they company dryNo stop trying to twist the words on my screen. Elon is milking his customer base and its obvious and apparent to everyone. I thought people would notice that and move to a better car manufacturer. >whose CEO would go on to be arrested for securities and wire fraud?Hindsight is 20/20>Where do you do your research, the daily show???I invested long before any of the scandals came to be and the focus on long haul makes sense for as long as we don't have a sufficient hydrogen infrastructure.
>>61862099Can he take one picture where he doesn't look like a slimeball piece of shit? Just one.
>>61862287MPT claims you can only diversify away idiosyncratic (company specific) risk, and at some point you have so many different companies and exposure to so many different sectors that adding another company doesn't reduce risk by much if at all. I think markowitz or sharpe has a mathematical proof on it out there somewhere. Apparently they say that number is around 20-30I say lean towards less because you have to take into consideration transaction costs and time and energy spent reorganizing your portfolio and tracking your positions as well. If you're just an average person and not a portfolio manager getting paid you're probably just fine with 12-15
>>61862099the idea of diversifying is reducing the volatility of your portfolio value, if you want to do it properly you should study the correlations between your picks, this has a cost of reducing the potential gains but they become more steady. For example if you pick 50 tech companies and etfs and the ai bubble bursts, the stocks are so highly correlated between them that all of them would go down at the same time and diversifying would be useless, even if between your picks you picked the one tech company that survives
