"How many stocks does a portfolio need to mimic the market reliably? It’s become fashionable to say not too many: maybe as few as 30." — BNN Bloomberg
Guyer Group client NDVR has run many computer-generated models of various stock portfolios which consistently have shown that the more diversified a portfolio is, the more likely it will mimic the market and reduce negative outcomes. Based on this research and data compiled by NDVR—Roni Israelov, a former principal at AQR Capital Management and now chief investment officer for NDVR, says that 30 stocks in a portfolio may not be sufficient.
Read more about his findings in this November 21st 2022 article from BNN Bloomberg here.