Only handful stocks have soared while vast majority of cheap stocks do only one thing, remain cheap.
Peter Lynch (in “Beating the Street”) said a couple of things about five stocks.
First, people who are not pro money mgrs and are directing their own investments should hold no more than five stocks because it’s too difficult to keep track effectively.
The other thing is, if one picks almost literally any five stocks, one will really stink it up, three will gain some but nothing to write home about, and the fifth one will be a star, making a pile of money. The reason it works is, each year 20% of stocks stink, 60% lie there like a compliant wife, and 20% are, well, stars. 💰