Question about Hosting Many Sites on Server

Sorry, I really couldn't figure out what section I should post this question. Also, I imagine the answer is on this wonderful site somewhere but I have been searching and can't find it...anyway...

If I have 300 websites, is it ok that they are all hosted on the same server? This is something my cousin and I often debate. He says NO because look at how many sites are hosted on Go Daddy and servers like that. I often read that you should NOT link sites that are hosted on the same server. We have 300 sites on one server and it makes me paranoid. So, now I am all confused and would like some input from you all if you have time.

Thanks!!

Doesn't matter if they are all located on the same physical computer but rather how many different c-blocks they are spread out on, and whether they interlink or not.

If multiple websites, all on the same c-block, are linking to each other, the big g's algorithm will be more likely to flag these sites as being owned by the same person... jmho

Google looks at the ip addresses of the sites so if you are linking them together use different c blocks. Register the domains using private registration so Google cannot use the registration information to find out they are owned by the same person. Do not use Google Analytics on the domains unless you have multiple accounts and use different ip addresses to access the accounts.

If your sites have a similar theme and you are linking them for valid reasons then it is not as much of a problem.