3 Great Stocks for Low-Risk Investors
Risk and reward are two sides of the same coin. When investing, you can't just focus on the rewards while blatantly ignoring the risks associated with obtaining them. Legendary value investor Benjamin Graham discussed the concept of "margin of safety" in his book The Intelligent Investor. In a nutshell, he was saying that investors need to ensure they have their risks covered so that their investments can enjoy "safety of principal and a satisfactory return."
In thinking about the concept of risk, it's pertinent to look at the company's track record of growth, its ability to handle crises over the years, its competitive position and market share, and management's capability in allocating capital. Companies that can manage the above well qualify as being "low-risk." Such stocks are normally blue-chip companies with a strong brand name and face little to no chance of going belly-up. Not only do they exhibit steady growth over the years, but they might pay an increasing dividend as well.
Here are three stocks that are suitable for investors with a low risk appetite.
Source Fool.com
