RE: Gerry55728 Jun 2017 23:12
i presume gerry is meaning that even with some very big
company like BP, it is still possible that some very large,
unanticipated event can make the share price fall through
the floor .... as BP's share price did when that massive oil
spill happened in gulf of mexico following the blow-out. so it's
an example of why it is risky to have 100% of one's portfolio
in ANY one company, even if it is a huge, global multinational
one. volkswagen's disaster with the emissions scandal was
another example (and look what happened to poor old RBS!)
... just suppose, for the sake of argument, that next week there
was a news headline that german authorities had uncovered
what appears to systematic financial misreporting by vodafone's
operations in that country over several years; sp would TANK.
... i'm not suggesting that has happened!
- but it's within the realms of possibility to
consider when planning risk distribution.