Diversified portfolio....?

Question

If you had to create a portfolio in South Africa with 2 stocks in the Top 40, and to obtain a well-diversified portfolio, which 2 stocks would you choose? Assuming you could only choose two.

Answer 1

Two stocks is not enough to diversify. You would need a minimum of 10-12 or so. It would be wiser to buy a socalled index-tracker or ETF, which follows the index of your choice closely.