The Holy Grail of the investing world is “Low Risk, High Rewards”

Discussion in 'Must-Read Interviews, Articles & News Items' started by Vidhi Khanna, Apr 1, 2015.

  1. Vidhi Khanna

    Vidhi Khanna Active Member Staff Member

    Joined:
    Mar 19, 2015
    Messages:
    579
    Likes Received:
    55
    Based on a thorough analysis of the best performing stocks over long period of time, not just in India but across several markets, we notice that there is common trait across many of the high performing stocks. These companies typically require very little capital to grow (fixed assets and more importantly very low working capital), have very little or no debt on their books, grow at a steady pace, are highly profitable and are run by high quality management. They are also among the most efficient within their industry, and the management is committed to managing their finances efficiently. A cursory glance at all these characteristics should tell you that these are the characteristics of companies which embody very low business and financial risk. These are not the high risk companies which load themselves up with a lot of debt, put up large projects and risk shareholders’ money.

    ......

    https://banyantreeadvisors.com/investment-philosophy/the-myth-of-taking-high-risk-to-yield-a-higher-return/
     
    w4wealth likes this.
  2. w4wealth

    w4wealth Well-Known Member

    Joined:
    Oct 16, 2015
    Messages:
    1,042
    Likes Received:
    339
    thanks for sharing
     
  3. w4wealth

    w4wealth Well-Known Member

    Joined:
    Oct 16, 2015
    Messages:
    1,042
    Likes Received:
    339
    which will be stocks that fall in low risk high reward category?
     
  4. darth

    darth Active Member

    Joined:
    Dec 9, 2015
    Messages:
    682
    Likes Received:
    193
    The Holy Grail of investing is "low risk and high returns"

    So very true!!!!!

    Just like the 'Holy Grail" - a myth and being searched for centuies so is "low risk and high returns". Just a myth and a search which wouldnt yield results...
     
    BombayBoy likes this.