The recent collapse in the share price of Carillion took many investors by surprise, but should it have?
I don’t think so.
Yes, on the surface things looked fine. Carillion was a highly successful company, with a very long track record of steady revenue, earnings and dividend growth.
But underneath the covers, there were some major problems which were easy to spot if you knew where to look.
To save you the bother of having to get that experience the hard way, I’ve written up what I think are Carillion’s five major problems in this month’s Master Investor magazine: