Preservation Of Capital

It's an investment strategy...one that favors low risk. That is, the goal in preserving capital starts with the ethos "Don't lose the money I just gave you." The hard part: preserving capital (i.e. taking low risk), but also beating inflation, and gaining enough to have the investment work for you, i.e. grow on both real and nominal terms.

So what do you own in a preserve-capital mode? Well, you start with cash. Not in a mattress, but in a money market fund. Then you move on to mid-term U.S. Government bonds. Mmmmaaaaaybe you buy a few equities, but low multiple stalwarts with fat dividends. And not much else. You won't be a hero investing this way...but you won't go bust either.