Stock Market Investors » Glossary of Stock Terms » What is a Capital Preservation Strategy?

What is a Capital Preservation Strategy?

When you start investing in stocks you should determine the investing strategy you will follow. One of the strategies you can pick is commonly referred to as capital preservation. If you select it, this means that you are more concerned for preserving your capital than making huge returns. This investment strategy is characterized as being extremely conservative. Capital preservation is usually preferred by investors who intend to leave their assets to their generation.

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