Buyer beware: Large companies
It it is also a rule of thumb that bluechip firms present a lower risk investment. But rewards will also be smaller - in capital growth terms at least. And there are still risks.
But a company called Marconi is, as they say, the exception that proves the rule.
Formerly the backbone of GEC, one of our biggest and best known industrial companies, it sold its crown jewel businesses and bet the cash on the internet revolution.
The net result - a catastrophic collapse in the share price when it turned out that its bosses had completely misjudged the growth of the market.
Massive debts meant the banks took control of Marconi and shareholders were left with a fraction of their investment.
Remember, this was a FTSE 100 company that at one point was valued at £35bn.
