053 | How Much Should You Have in a Single Stock?

Save Like Dave Podcast

How much money should I put toward individual stocks? Is it okay to invest in my favorite company?

Make sure to toon into this week's episode as Dave is going to share a remarkable story that brings to light the pitfalls of putting too much of your cash into one stock.

If you’ve spent any time learning how the stock market works you probably have heard of this advice and it’s a wise one: Diversify.

As with just about everything in life you need to have a balance.

In the episode, Dave provides a simple rule of thumb to follow when investing in individual stocks so that you can sleep comfortably at night.

It's important to set the guidelines now before you get too emotional about one particular stock or company.

Questions for Review:

• Have you set up a diversified portfolio?
• Are you too heavily invested in one particular stock? If so, what can you do to spread out your risk?
• Take time today or work with the right person to make sure you have setup a diversified portfolio.

Quote From the Episode: "Life is about balance. Be kind, but don’t let people abuse you. Trust, but don’t be deceived. Be content, but never stop improving yourself." -Zig Ziglar