Too many eggs in 1 basket? How to diversify while proudly owning correct a few shares

Tech shares on display mask on the Nasdaq.

Peter Kramer | CNBC

That is our Club Mailbag e mail [email protected] — so that you ship your questions straight to Jim Cramer and his group of analysts. We can no longer supply deepest investing advice. We can most productive judge extra overall questions about the investment path of or shares in the portfolio or linked industries.

This week’s inquire: I believed Jim talked about having spherical 5 shares in a portfolio without a extra than a 5% retaining in every stock. However when you most productive possess 5 firms, the numbers would dictate $100,000 or $200,000 in every stock, respectively, when that you would be succesful to additionally safe $500,000 or $1 million of discretionary money to take a position.  That is a form of eggs in a few shares, but it is seemingly you’ll perchance perchance no longer take care of monitoring extra than 5 shares. Thanks in attain for the clarification. — Ramon