Exactly ten years ago, one of the biggest financial crises in modern history occurred – the collapse of investment bank Lehman Brothers. The impact of this event was devastating and led to a global downturn that affected many countries and companies. But now, ten years later, it is time to look back and draw the lessons we can learn from this crisis.
Today’s investors can learn from the events of 2008 and adjust their investment strategies to better prepare for future crises. There are three important lessons we can take from the collapse of Lehman Brothers that investors should consider when managing their portfolios.
The first lesson is the importance of diversification. The collapse of Lehman Brothers showed that even large and established companies can go bankrupt in a short period of time. A well-diversified investment strategy can help minimize the risk of losses by keeping the portfolio broadly diversified to cover a variety of industries and markets.
2008 banking crisis: what investors can learn from Lehman Brothers
Exactly 10 years ago, the investment bank Lehman Brothers collapsed, causing a financial crisis worldwide. The effects are still being felt and there are valuable lessons investors can learn from this event.