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Conservative investing means that you invest your money in safe and secure places, such as banks and government-backed securities. However, although this strategy may protect against inflation, it will not earn any value over time.
Conservative Investing Strategies
If you’re a conservative stock investor, you want to place your money in companies that has the following features:
**Proven performance: You want companies that have shown increasing sales and earnings year after year. You don’t demand anything spectacular, just a strong and steady performance.
**Market size: Companies should be large-cap (short for large capitalization). In other words, they should have a market value exceeding $10 billion. Conservative investors surmise that bigger is safer.
**Market leadership: Companies should be leaders in their industries.
**Perceived staying power: You want companies with the financial clout and market position to weather uncertain market and economic conditions. It shouldn’t matter what happens in the economy or who gets elected.
As a conservative investor, you don’t mind if the companies’ share prices jump , but you’re more concerned with steady growth over the long term. |
conservative investing