Peter Lynch’s advice, "Hold no more stocks than you can remain informed on," emphasizes the importance of staying knowledgeable about the companies you invest in. His point is that, to make sound investment decisions, you need to keep up with the performance, industry trends, and any news or developments related to each stock you own.
If you hold too many stocks, it becomes difficult to remain adequately informed about each one, which could lead to poor decision-making or missed opportunities. Lynch advocates for focused investing, suggesting that it's better to have a smaller portfolio of well-researched stocks rather than a large portfolio that is hard to manage effectively. The key idea is that being well-informed gives you a better chance of identifying the true value and potential of your investments.