they leave you too exposed to risk having an undiversified portfolio is a mistake if you concentratell your bets in that one sector and that takes off, you beat everybody in that sector. get profile by every magazine and raise tons of capital. here is the bottom line. when you are an amateur or professional, you need to do your homework and keep your portfolio diversified. this is the routine exercise that protects you from monster losses down the line monster in south carolina. >> caller: i was wondering if i am a new investor, how many stocks should be in my portfolio? >> after ten, you are kind of a mutual ton if you are a real stock junky like i am, you can take on more. and if you have help, it is not that bad but ten is the max don't do more than that. because you won't be able to do the homework roberto in texas. >> caller: hi jim, i just had a question about, because i am a new investor, i am 29. and i have a small amount. $1,500, and i am wondering if i should invest in index fund. >> index fund no matter what, don't forget index funds keep you diversified. and we like to di