5 Supercharged Growth Stocks That Can Start a Diversified Portfolio
Investors aiming to achieve long-term financial goals can enhance their chances by diversifying their portfolios. If your stocks are spread across demographics, geographies, and industries, a downturn in one area may be balanced out by an upturn in another.
For instance, a unified global increase in taxes on carbonated beverages with sugar may hurt sales at Coca-Cola and PepsiCo. However, if you had Starbucks in that same portfolio, the decrease in soda consumption may be offset by increasing coffee consumption. That's just one of the many ways a portfolio can benefit from diversification.
How many stocks create a diversified portfolio? That depends on how closely related the stocks in your portfolio are. The more unrelated your stocks, the fewer you can hold and maintain diversification. Still, you want to aim to have at least 20 stocks to gain most of the benefits. Here are five growth stocks to start you off.
Source Fool.com
