Motley Fool argues against owning all seven Magnificent Seven stocks individually because their overlapping AI exposure could make them move together. It favors a diversified portfolio of about 50 stocks, while saying a broad index fund’s other holdings can help cushion the risk.
The article says investors could still choose two or three of the stocks, based on gaps in their portfolios and confidence in each company’s overall business. It points to differences such as Alphabet’s search, YouTube and Android businesses, Amazon’s e-commerce and streaming, and Tesla being the group’s only automaker.
As an example of stocks moving together, the article says AI stocks fell as a group after Anthropic CEO Dario Amodei urged a slowdown in AI development in a Sept. 12 note. The stocks recovered fairly quickly, it says.
