Question:

What is a conservative stock investor?

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what does it mean if you are a "conservative" stock investor?

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  1. A conservative investor will only invest in those securities that are considered to have minimum risk and a greater possibility of reward (appreciation and/or dividends).

    Most conservatives will invest in primarily major corporations (blue chips); mutual funds with a morningstar rating of at least four stars; and or government issued or backed securities.

    Many investors, both young and old, prefer conservative investments, since they have a very high "sleep factor" - you can invest in them and are able to sleep at night without worries.


  2. Someone who takes positions in lower risk investments. One rule of investing generally applies. The longer you are in, and the more successful you are, your outlook changes from higher risk to protection of assets.

  3. somebody who only invests on "low risk socks"

    for example INTC intel

  4. The other answer is entirely correct.  Just to add one point about a conservative investor style it is generally recommend for older investors who don't, possibly, have time to make up a large loss in a higher risk stock.  An older investor may need access to cash sooner that a young investor.  Since it is your money, you are free to be a young investor who is conservative in style.  I would suggest the younger you are the more aggressive (risk taking) you should be.  That is a general bit of conventional wisdom in investing.

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