Understand what you own
An equity interest represents a claim on a business whose future results are uncertain. Competitive position, financial strength, governance and the price paid all matter to the investment case.
Consider concentration
A collection of companies may still share a common sector, region or economic exposure. Company-specific analysis needs to sit alongside an understanding of portfolio-level risk.
Allow for difficult periods
Share prices can fall sharply and dividends are not assured. Equity investments may be inappropriate for money needed at a fixed date or for investors unable to tolerate substantial losses.