No. of Recommendations: 1
The new issue of Business Week reports that Aflac, the insurance company, is stuck with $420+MM in Parmelait bonds. Parmelait in Italy seems to be in trouble for having hidden losses with creative bookkeeping. The jury is still out, but the bonds could be worthless.

Insurance companies have large investment portfolios that are managed by professionals, usually very conservatively. This is a pretty good reminder about the risks of over concentrating in one investment. Even the pros sometimes get caught by the unexpected.

There is nothing like diversification to let an investor sleep well.
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