Soaring iron ore and copper prices, as the world prepares for a post-coronavirus economic recovery, plus a record $5.1 biilion (£3.7 billion) dividend, made the miner BHP the most valuable business in Britain last week. That crown is hotly contested by the energy giant Royal Dutch Shell (stock market ticker: RDSB), whose shrivelled stock market capitalisation also bounced a bit on a spike in the oil price.
Both are long-term high-yield constituents of my “forever fund”. In very different ways they demonstrate the value of diversification, or not having all our money in technology stocks that pay low or no dividends.
Diversification does not matter until it becomes the only thing that matters, as anyone who was investing when the technology bubble burst 21 years