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Video: How many stocks should you own?

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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The Motley Fools purpose is to help the world invest, better. Take Stock is The Motley Fool’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Click here now to request your free subscription, whilst it’s still available. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

A version of this article, written by Brian Richards, originally appeared on fool.com

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