YouTube video by Ndubuisi 'Andy' Egwim giving investing advice: using a '$50K rule' for stock allocation to avoid disasters by limiting exposure per position. In this excerpt he recommends, hypothetically, dividing $50,000 across up to 10 stocks and limiting any single stock to about $5,000 as a discipline; he references students who became wealthy from Nvidia as a contrasting anecdote.
You've already got an investment in property, you now want to invest this 50k in stocks. So even if you decide that, oh, I want to Invest in only 10 stocks now, you might decide, okay, the maximum I'm going to put in any of these 10 stocks will be 5,000. It doesn't have to be five. It doesn't have to be equally. But basically, if you have that rule, again, it's rules that help you to avoid disaster. If you say, I'm not going to, and that's basically financial discipline, I'm not going to invest more than 5K. Oh, they said this talk is going to blow up. Like, I have some people in my class, I keep teasing them. I call them Nvidia millionaires because some of them bought Nvidia like three, four years ago. But basically they didn't know how to analyze companies and all that.
