Reply To: CLLN

[Nigel Bell]

Surely the main point about Carillion is that it is but one stock in a portfolio of high yielding shares. The nature of high yielding shares is that a minority may end up like Carillion but that others in the portfolio will make up for the always possible disasters like Carillion. I don’t intend to change my approach which is to buy and hold for eternity and benefit from the natural yield that the portfolio generates. I am more aggrieved that the directors at Carillion were in effect being economic with the truth in their releases to the Stock Exchange. There were plenty of rumours and the stock was being shorted back in 2016 so those who wanted to get out could have. I wonder also how the auditors will deal with the questions they need to answer. Carillion has gone but that’s the nature of investing – some will go bad and my advice is to move on and enjoy the benefits of the other high yielders.