Ways In Building Wealth : Invest Diversification Stocks or Focus Selected Stocks?

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Invest in many individual stocks or invest a few selected stocks?

After reading articles online, watching YouTube regarding investment and my own some simple research, there are many stocks that I want to invest due to "Fear Of Missing Out".

Ideally, if I have huge investment capital & monthly I can save huge amount from my earned income for investment, I would invest in many individual stocks with higher annual returns than S&P 500 Index (long term average 9%-10% annual returns) but of course it will be high risk.

After much considerations and calculations base what my current investment capital & monthly amount that I can invest, I will try to focus on 2-4 selected growth stocks with long term average 20%-25% annual returns that I have confident & beliefs in the companies' business (Still in progress of searching the growth stocks).

Great growth stocks

To provide you with some examples, here are 10 excellent growth stocks available in the stock market today:

Source: The Motley Fool (May 14, 2021)

Again, I'm not a professional investor and no one can predict the stock market, my strategy of focusing 2-4 selected growth stocks with 20%-25% annual returns can be risky in short term as high growth returns will have high risk and high volatility or simply I had invested in wrong stocks. Hence I will continue to invest in S&P 500 Index ETF in long term (around 9%-10% annual returns) to "balance" my portfolio (I hope).

My goal is to accumulate as many shares of the selected 2-4 stocks as possible in order grow my wealth faster than average stock returns in long term. (My believing is that stock market will go up in long term)

I’m prepared myself for the volatility & risks as I had set up my emergency funds for raining days (hope that I will not cash out my investments when in bearish market for emergency use) and trying to find ways to create side incomes to fund my investment (still working on the side income).

There is no one specific number of stocks to follow in order to build wealth faster in investing.

It depends on your

Let’s work towards in building our wealth.