About the case of GM and market cap?

  • Thread starter Thread starter Cavallino Silver
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Cavallino Silver

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I've heard that bigger companies generally carry a lower risk. But then how is it that GM went bankrupt? How to avoid investing in a big company thinking that it will do well and then losing it all?
 
The risk is generally lower with a large cap company. The volatility is lower. But that doesnt mean that any individual one of them couldnt go bankrupt. Thats the reason for diversification.
 
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