How to avoid holding the next GE

This Could Be the Best Way to Prepare for the Worst...READ MORE
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This Could Be the Best Way to Prepare for the Worst
The worst is not unimaginable for many investors. It should not be unimaginable for any investor. The worst-case scenario could be a stock that represents a large percentage of your portfolio falling sharply. This might sound unimaginable, but it can happen in several ways.

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Some investors have a long-term focus. They might have bought a few stocks years ago to build a diversified portfolio and continue to hold those stocks. It is possible one or two of those positions has outperformed the others and now represents a large share of the portfolio.

Or perhaps you retired after working at a large company and participated in a share buying plan that created great wealth for you, or perhaps that participation created a heartbreaking situation such as the one we consider in our latest article, where we review the shares of GE.

We didn't have to pick GE because there are so many examples including Sears or other large companies that have declined. Or, even stocks of large companies that have simply moved sideways for years. These positions can hurt an investor.

As we explain in the article, it pays to watch for these stocks and we consider a potentially controversial question – could shares of Apple be the next GE? You will find all of this and more in our latest free educational article which is available right here.

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