Limit Your Stocks - Joanne of Buffalo, New York gives us the reason:
You become overly diversified which erodes your chances for substantial gains.
When you're in too many stocks, you need a higher number of stocks to perform well in order to compensate for the laggards.
If you're in 25 stocks, you need a higher number of stocks to perform well in order to achieve better results in your portfolio.
A portfolio of 10 stocks may have a higher degree of risk, but if that risk is managed properly it is easier to achieve substantial profits within that smaller portfolio. The same thing applies to mutual funds.
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