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Securing a place on the FTSE 100 is no easy feat, typically achieved through years of consistent growth and solid performance. Around 80% of constituents are well-established companies with long-term growth potential.
So there aren’t a lot of stocks on there I’d avoid?
Even the best companies slip into risky territory, whether it be from managerial failings or external factors. In some instances, geopolitical issues disrupt supply chains or a competitor swoops in and steals market share.
BP‘s suffered recently from oil price fluctuations and costly efforts to meet sustainability goals. Reckitt Benckiser took heavy losses this year after a lawsuit resulted in a costly fine. Both holdings of mine, I trust these short-term issues will be resolved and they’ll recover.
However, there are two Footsie stocks for which I see little hope on the horizon. I’d happily be proven…
