The Value Perspective Website

The Value Perspective website contains short but interesting articles by Schroders, the asset managers. I quite like this quote from their post of Good comapnies and good investments:

we focus on two main risks - the risk of overpaying for our investment and the balance sheet risk. These two risks are the major way investors permanently lose money. In the case of utilities, while the businesses themselves are solid, their balance sheets are aren't and large amounts of debt significantly increase the risk for equity holders. ... Additionally, while the income provided by utility company dividends is attractive, high levels of debt have an ability to put this in jeopardy since interest costs and debt repayment will take priority over payments to shareholders.