Cramer: "[Owning] Ten [stocks] is just right

Cramer: How Many Stocks Are Too Many?


Largely Cramer thinks if you hold more than 10, you won't be as informed as you need to be to succeed. "More than ten and you will likely start skimping on the homework , and that's incredibly dangerous," Cramer said. By homework, Cramer means the research that's necessary to keep yourself abreast of all the catalysts in the market that can move the stock. It involves examining earnings reports , reading news stories, and parsing through Wall Street analysis. And that's time consuming. "Homework means committing one hour per week per stock," Cramer said. "Much less than that, and you might as well be gambling." And few people can commit more than 10 hours per week. "Therefore, I say you can't handle thirty stocks, even twenty is like having a part-time job. Ten, however, is just right," Cramer said.

  • I would have a hard time with just 10 stocks. 
  • I try to diversify across industries and within industries. For example we have Pepsi, Coke, and Dr Pepper.
  • The chart below illustrates my hypothetical 10 stock list ... with an total investment of approximately half a million. 

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