Concentration Risk Explained | They Did Everything Right and Still Lost Everything

In this episode, we tell the story of Nortel Networks — a company once worth nearly $400 billion that employed 95,000 people across 150 countries. Within a decade it was gone, its share price falling from $124 to zero. And the people who suffered most weren't reckless investors. They were loyal employees who had their retirement savings tied to the same company they worked for.We use the Nortel story to explain concentration risk — what it is, why it's so hard to spot when things are going well, and why spreading your money across many assets isn't just sensible, it's the closest thing investing has to a free lunch.In this episode:How Nortel went from 19th century Canadian telecoms company to one of the biggest tech firms on earthWhat happened when the dot-com bubble burst — and why Nortel's collapse was worse than mostWhat concentration risk is, and why it feels like conviction right up until it doesn'tWhy holding stock in the company you work for is a unique and specific dangerWhy diversification is boring, and why that's exactly the point🔗 Compare the best UK investing platforms at theinvestorscentre.co.uk🔗 The best sign up deals with UK investment platforms | Get up to £500 in free shares.This podcast is for informational purposes only and does not constitute financial advice.