The dangers of not diversifying

The headlines today of Carillion going in to liquidation is a sobering reminder that investing in a small number of stocks and shares can give a rocky ride.

There are, of course lots of questions to be asked about how Carillion could have ended up like this, given that it was effectively a Government sponsored company, but the investors concern here and now is that the shares are suspended.  No value, no liquidity and an uncertain future.

In our view investing in to a broad range of diversified investments is the only prudent way to manage  your wealth. We do have clients who invest a small proportion of their wealth in to stocks and shares but in general this is just a flutter for interest.

Carillion 1 year share price