Actor Sridevi was the quintessential DIVA of Indian Cinema. She held her own in Indian Cinema in many languages, starting from the south Indian Languages of Tamil, Telugu, Kannada, Malayalam and further branching out to Bollywood and conquering Bollywood in the 80s & 90s with blockbusters galore. Even in her comeback a few years ago in English Vinglish or MOM, she was at her classical best acting and picture of good health.
All that came to an end on 24th Feb 2018, while she collapsed and died in Dubai, where she had gone for a family wedding. No one expected that Sridevi, who looked not a day over 30 years of age, would die. In hindsight, it seems almost ironic that somebody who appeared so fit and health conscious was actually doing more harm to themselves than was evident.
In the world of finance too such things happen with regularity. Enron, the energy major, was a Fortune 100 company that collapsed overnight. Another example was the ill-fated Satyam Computers in India. The greed to sustain oneself and appear prettier than what the reality is made these corporates take decisions that were inappropriate and thereby leading to their early demise.
We have countless cases of finance companies in India, sometimes referred to as Blade companies, Chit funds, etc that have in the past offered high rates of return, but failed to sustain the same. This inevitably results in investors losing their principal.
The way to guard against this in one's Portfolio is:
Suitably diversify one portfolio so that no single stock or investment is over 5-10% of the overall investment. This way even a sudden death will not leave the entire portfolio vulnerable.
All that glitters is not GOLD, so the more the GLITTER, try to stay away.
PS: BITCOINS which had generated over 1300% returns in 2017 and other Crypto-currencies which are seeing the frenzied following, are something to be careful about as well.
Risk & Return are two sides of the same coin, those who understand this will make money, those who ignore it will lose money.