How Many Tech Stocks Should You Hold In Your Portfolio?

The simplest questions are often the most difficult to answer. How many stocks should you hold in a portfolio? Starting at 21,000 feet, most investors are people with some amount of capital they want to put somewhere so it can grow over time. The duration of time often correlates to risk tolerance and the amount of capital at stake. There are old stock market millionaires, and there are bold stock market millionaires, but there are few old bold stock market millionaires. People who treat the stock market like a casino won’t keep their capital for very long. The more money you have, the more you become interested in capital preservation. The more stocks you hold, the less risk you’re taking on.

Investors need to start with a holistic look at their total assets under management, then ask themselves the first question. How much of my capital do I want to invest in tech stocks? If you’re risk averse like we are, you might keep that number under 25%.

Our 34 tech stock portfolio contains about 22% cash, so our actual exposure to tech stocks is even lower. The question we’re asking ourselves lately is how many tech stocks should we hold as a maximum? Other investors might be asking how many stocks they should hold at a minimum. This is where an objective rule can be a useful addition to