How Many Stocks Should I Own?

The article is a portfolio diversification explainer framed partly around Nvidia’s outsized influence on the S&P 500. It notes that Nvidia now represents about 8% of the index after crossing a $5 trillion market cap earlier this year, while the 10 largest S&P 500 companies account for nearly 40% of the index. The main takeaway is that most investors holding individual stocks should aim for roughly 20 to 30 positions across multiple sectors to reduce company-specific risk, while those already using broad index funds may need only a handful of satellite stock picks. The piece warns that adding too many names creates diminishing diversification benefits and more tracking complexity, and it emphasizes keeping any single stock below about 5% of a portfolio. Overall, the market impact is centered on concentration risk in large-cap tech and the case for broader diversification.