Six stocks carry two kinds of risk.
The market pays you for one.
80
Percent of a single stock's risk is company-specific. You can diversify it away for free. And it pays you nothing extra to hold it.
A friend told me he does not need fifty stocks. Six names, all researched, all high conviction. Fair. But high conviction is not the same as high compensation. The extra risk he carries by holding six instead of a broad basket, I asked him one thing. Who is paying you for it.