These individual differences are simply not captured at the group level, which is why investors should always examine the
performance of individual companies regardless of the group trend.
The stock
prices of individual companies can vary significantly over short periods of time, and such price movements are not always correlated with changes in company fundamental performance.
But what might be a surprise is that their recruitment and retention seem to depend less on the industry sector and more on the
culture of individual companies.
To me there is a significant distinction between the economic impacts of changes in interest rates in contrast to how it might affect the
valuations of the individual companies I am specifically invested in.
The
weighting of the individual companies in the reference index EURO iSTOXX High Dividend Low Volatility 50 is based on the historical one - year dividend yields whereby each company is limited to a maximum weighting of three percent and only a maximum of ten companies per country can be included.
Aggregate profits were roughly 5 per cent above analysts» expectations, with 70 per
cent of individual companies reporting profits that were ahead of expectations.
Q: Why do you suppose so few people in risk management, and senior management at major financial firms, were unwilling to consider alternative views of the sustainability of the risks being taken as the risks got larger and larger relative to the
equity of individual companies, the industry as a whole, and the economy as a whole?