If you are starting out with individual stocks, is it better to build a position with fewer companies?

Someone once told me it's better to build up a position with a small handful of companies if you have less money to start with rather than trying to get a lot of shares from different companies. Is that the prevailing sentiment? It's hard to not feel FOMO for missing out on so many companies. But if you had to start over with a few thousand dollars, would you build a larger position in 2-3 companies?