Let's say my portfolio is $200,000. If I invest say $2,000 in an individual stock or fund, it would seem to be too small to have an impact on the overall performance. On the other hand, I like the idea of diversification and so would not want to have too much in any one stock. Is there a rule of thumb, in terms of whether I should invest in $5,000 or $10,000 or $20,000 pieces, 2.5%, 5% or 10% of the portfolio? Trying to have diversificiation, but if I diversify too much it seems that I don't really benefit if I make a good decision.
Thanks.
Thanks.