Uncertainty is the enemy of investing. When there is any uncertainty around the predictability of a company and its earnings, 'smart investors', or so they are called, tend to stay away. You could argue that this approach is a smart approach; after all, preservation of capital is the most important prerequisite of growing capital. But investing involves risks and while avoiding them will certainly result in capital preservation, it will not lead to attractive absolute returns. After all, if you don't take risk, you should expect to earn the risk-free rate. That rate, as measured by the 10-year Treasury, is currently about 2.5%. Some may argue that this return wouldn't even cover the rate of inflation.
In my opinion, these...
|FREE||SA PRO MEMBERS|
|IDEA GENERATOR||X||Exclusive access to 10 PRO ideas every day|
|INVESTING IDEAS LIBRARY||X||Exclusive access to PRO library of more than 15,000 ideas|
|SECTOR EXPERT NETWORK||X||Exclusive access to all sector experts for direct consultation|
|PERFORMANCE TRACKING||X||Track performance of all PRO stock ideas|
|PROFESSIONAL TOOLS||X||Professional Idea Filters to zero-in based on industry, market cap and more|