If a friend told you to put 85 percent of your retirement savings in the stock of one corporation, you would probably think he or she was crazy. It wouldn’t matter to you how well that stock had performed in the past or how fervently your friend believed in the future of the company. As good investment managers usually advise, smart diversification is the prudent strategy given the stock market’s volatility to ensure a safe and comfortable retirement.
Unfortunately, the charitable organizations of Georgia are going to lose out on millions of dollars in donations this year—and possibly every year for the foreseeable future—because the trustees of the region’s largest private foundation have chosen a foolhardy investment strategy. They have more than 85 percent of the foundation’s assets invested in Coca-Cola stock, according to the tax documents they file with the IRS every year.
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