Diversification reduces risk, but excess stocks dilute conviction, monitoring, and meaningful impact returns..Academic research shows most portfolio benefits arrive after holding eight to ten stocks..Beyond that, additional stocks add complexity without materially improving risk adjusted returns consistently..Too many holdings increase tracking errors, reactionary trades, and emotional decision making stress..Concentrated portfolios force deeper research, clearer theses, and stronger accountability for outcomes overall..Owning twenty stocks often mirrors the index, while still charging yourself active risk..Fewer stocks make rebalancing simpler, costs lower, and portfolio reviews faster, calmer consistently..If conviction is weak, adding more stocks won’t fix discipline or returns either..Quality businesses held longer usually outperform crowded, over diversified portfolios over time periods..Read More Stories.Join our WhatsApp Channel to get the latest news, exclusives and videos on WhatsApp