COH down more than 18% today after it released a dreaded 'Market Update' to the ASX.
Always shy away from putting too high a percentage of your portfolio into individual stocks.
It is tempting so to do in order to chase big gains, but it is better to create wealth slowly and surely.
A well-diversified LIC can hold well over 100 of the top stocks and trusts (and sometimes even invests in other LICs) so an individual company running into problems has little impact.
Focus on the growing dividend stream and not only the day-to-day share price and buy more when the market is low.
Cochlear's 6 month chart:
Source: ASX
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