The right portfolio size depends on the investor. A smaller, concentrated portfolio is easier to manage and gives your best ideas more room to matter, but it also means a single bad pick can significantly drag down returns. A larger, diversified portfolio reduces that company-specific risk and smooths out volatility but requires more time to maintain and can dilute your strongest convictions. Index funds can offer an easy path to broad diversification with minimal fees.
The Motley Fool recommends owning at least 25 stocks across a handful of industries. But the right number ultimately comes down to an investor’s risk tolerance and how closely they want to follow their holdings.
AI enthusiasm, dividend side hustles, and social media: How Gen Z and millennials are investing differently
Younger investors have their own set of experiences that are informing their stock picks, and artificial intelligence is central to their outlook. Two-thirds of Gen Z and millennials own AI stocks, most plan to hold them for the long term, and the majority expect AI to outperform the S&P 500 over the next decade.
The generational investing divide extends beyond AI. Younger investors trade – not invest – more frequently, view dividend investing as a side hustle they can learn about on YouTube and TikTok, and are less focused on retirement savings than on building wealth and buying a home.
Still, the generations aren’t entirely different. Fundamentals, such as competitive advantage, trust in leadership, and company financials, drive stock-buying decisions across all age groups. Tech is the consensus top sector to invest in. And friends and family remain trusted sources of investing advice regardless of generation.
Methodology
The Motley Fool surveyed 2,000 American adults currently invested in stocks, ETFs, index funds, or equity mutual funds via Pollfish on March 3, 2026. Results were post-stratified by age and gender to generate nationally representative data. Pollfish employs organic random device engagement (ORDE) sampling, recruiting respondents through a randomized invitation process across digital platforms to minimize selection bias.
