Diversifying is more about asset classes as opposed to diff stocks in the same index imho. Better off being all in the best stocks than part invested in some hopeful or high risk stocks - they are all just stocks after all. Also, diversifying while taking on no more risk is a hard task - usually diversifying in the stock market just means the good stocks offset the laggards in any portfolio. Id rather find the best and invest in one or two of the best.
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