Owen Raszkiewicz

So just some words of wisdom here on the end.

If you had a share portfolio as opposed to an ETF portfolio, we said maybe five ETFs would probably be enough.

But for shares, you probably want to own a fair bit more than that.

So in the old stockbroking land, there used to be this thing, the race to 30, which was how quickly can you get 30 shares in your portfolio effectively?

Because they said that once you get to around 30 shares, the benefits of diversification kind of wear off.

But if you know what you're doing, and there are many good investors who I know that know what they're doing,

they would happily own 5 or 10 shares because they understand the specific risks that are applied to each of those companies.

And they would say, well, if that one fails, this other one has nothing to do with that industry, so it's not going to be affected.

And even if the market falls, I'm happy to cop that.

But basically, after 10 investments, there's studies that show about 70% of that specific risk can be eliminated.

After 30, you don't really get much benefit.

Now, there is one other thing.

I know we've gone a bit geeky here at the end.

There's one other thing here which I want to get across to people.

Even though we say race to 30, and there are camps for and against more diversification, there is another study that found that only 4% of companies on the stock market account for all of the outperformance of the stock market over fixed interest or term deposits.

So 4% of companies on the entire stock market, that's like

a needle in a haystack.

So people say then, well, why don't you just buy more shares?

And hopefully one in every 25 that you buy is one of those 4%.

That can work too.