Conservative Stocks

What are conservative stocks?

A low risk investment strategy where long-term capital appreciation is the main focus, is known as conservative . This is usually achieved through the purchase of blue chip stocks, with very little buying and selling.

As a strong supporter of conservative investing, I believe the main goal is preservation of capital. Warren Buffet once said the key to being a successful investor is to never lose money. Unfortunately, most of us have lost money on our investments at one time or another.

Those with a low level of tolerance will avoid the stock market. My husband and I used only low-yielding CD's for 20 years. This was due more to lack of knowledge than fear.

There is a definite conservative way to invest in the stock market and receive higher returns than CD's or Bonds, with little risk. It takes patience and understanding in order to achieve this.

I have found that an individual's definition of conservative is determined a great deal by the age of the person. For example, a 25 year-old will most likely be interested in investing in an aggressive penny stock, whereas, a 55 year-old will probably shy away from this. There are exceptions of course. People with a lot of money usually set aside a small percentage for aggressive investing, regardless of their age.

Conservative stocks do present one problem, and that is boredom. It is true. Investment strategies utilizing dividend reinvestment and dollar cost averaging, have no appeal. However, the long-term returns yielded by these methods is anything but boring.

If I was 25 years old again, and had the investment knowledge that I possess today, I would first and foremost fund my retirement account, then make use of DRIP's offered from a few select companies. If I had only understood the power of compounding at a young age, my retirement would have come much sooner.

I have isolated companies that show great promise of long-term growth, with very little downside risk. These companies should fit into any conservative investors portfolio.

Conservative Stock Recommendations

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