Do you go through the same exercise I do?
Once or twice a month I'll torture myself trying to construct the perfect portfolio. Sometime times I think five stocks are all you need. Consider XOM, MMM, O, KMB, and JNJ.
Then I realize there isn't enough diversification there. So I'd add KO, SO, T, GPC, and LMT.
Then I think, yeah right, I can't leave out WMT, and if I am in that space I should add a little TGT, COST and LOW.
That's 14.
If I have KMB shouldn't I have PG and CL?
KO without PEP and DPS?
LMT but not BA?
O and not NNN or my little sleeper, ADC?
SO without WEC, ED and DUK?
That's 25.
I have to face facts, it's a hopeless cause. Collecting companies is a very expensive proposition. I need more money.
Next month I bet there are 25 different companies to consider. It never ends.
I'd love to hear your version of 5, 10, 20 or 25 stocks everyone should own.