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Hi All - Good points on both sides. I believe research has shown that investing in 12-18 stocks (which are equally weighted in the portfolio) allows you to obtain about 90% of the benefits of diversification (I think this was per Reilly/Brown in Investment Analysis and Portfolio Management). However, in practice I follow Airelon's strategy of conservative investing while keeping an eye on fees (i.e., funds) and inflation. This is really the way to win in the long run unless you have an eye like Warren Buffett or Bill Miller.
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