In general, it consists of a very specific saver profile, which responds to clearly conservative guidelines regarding their investment strategy. And that under no circumstances do you intend to risk your assets, and less in small capitalization titles, or of a speculative nature. Protecting your savings takes priority over the return your investment can generate. At the same time their actions are aimed at longer terms, one or more years. And that is usually based on very traditional models regarding the lines of business presented by the companies that are the object of their claims to take positions on the stock exchanges.
From this well-defined scenario, these investors can be identified with various denominations: conservative, defensive, conventional, etc. And what kinds of shares do they buy in their trades on the equity markets? Undoubtedly those that offer greater security, and fundamentally that do not cause very high movements with respect to volatility. As long as their variations between the maximum and minimum price in the same trading session are tighter, the better for them. To be potential candidates, therefore, to make up your investment portfolio for the next few years.
The values of your investment portfolio
When establishing their selection in equities, they tend to opt first of all for stocks that are part of the national benchmark indices, and if possible with the maximum information on them, as well as on the business activities in which they are integrated. their companies. Deal. They do not have too many options to hire them, but are reduced to the usual values, lifelong, that have been operating for many years, and also have surely healthy business results, even with very high profits every year.
But what are these values specifically? Initially, the so-called blue chips, or the most representative companies of the national benchmark: BBVA, Banco Santander, Endesa, Iberdrola and Repsol. It consists of companies with greater price stability than others, which rarely point to very marked deviations in each trading session. Even though the Spanish oil company has shown greater volatility in recent months, and as a result of the collapse of oil in the financial markets, reaching levels of 30 dollars a barrel, with a depreciation in the last year of more than 60%.
On the other hand, they have the advantage of contributing to this class of investors. a more than interesting dividend remuneration, which approaches 6% in many of these cases. To the point of outperforming the main fixed income products (time deposits, bank promissory notes or public debt), which barely offer 1% interest. Due to the lowering of the price of money by the European Central Bank (ECB). And that at any time can serve as an incentive to make savings profitable with greater guarantees, and even with some security.
Anyway, they are not looking for these types of values, they are speculative proposals that can ruin their aspirations. The reason is more than evident, since they are highly variable values that can make them lose some of your assets in a few trading sessions, and at any time. And that on the other hand, they are more difficult to follow through a correct technical analysis. They rarely chose these alternatives provided by the stock markets.
What are your goals?
Another of your goals, and oddly enough, is to protect your savings through strong stock selection, which can rarely crash in the stock markets. Not in vain, your investments are directed to the medium and long term rather than the short term. They are not in favor of a certain instability in their proposals, beyond specific operations of higher risk. There will be very few times that they close their operations in a few days, and less in the same trading session.
Nor are they in favor of having access to markets little known to them and which, in general, coincide with those located outside our borders. They are limited, in most cases, to national indices, and if they belong to the Ibex 35 it is better for their interests and for the strategies designed by these people. They don't like to experiment with new investment models, even at the best times for equities.
These are more or less the most notable characteristics of the profile that these small and medium investors present, and that they use it at all times to obtain their objectives. In consideration of the most aggressive ones who try to make operations profitable as quickly as possible, and with high-risk values, with large fluctuations in their prices. They are, in conclusion, two absolutely different ways of understanding stock investing.
What do they get from their operations?
The more conservative investors have a different way of channeling their savings into the equity markets. And that focuses simply on obtaining minimum objectives that allow them, little by little, to increase their personal assets. It is convenient that you keep it in mind in case you want to emulate this strategy from now on.
- Safety always prevails more than profitability, since its closest objective is preserve savings that have accumulated over many years, including throughout your life, as in the case of older investors.
- In no case are they governed by high-risk options.Instead, they try to limit them almost every time they invest their money. It should not be surprising that they rarely formalize operations of these characteristics and, at most, on a one-off basis.
- They have a very limited list of values that are linked to very specific sectors of the Spanish stock market: banks, roads, construction companies and, especially, companies linked to energy activity.
- In their investment portfolios it is very common to find securities that distribute a high dividend each year, higher than 5%. And what does it do to them? form a fixed income within the variable, but with higher returns than other savings-related banking products.
- Definitively take advantage of the most favorable scenarios stock markets, and tend to be sidelined when uncertainties take over their major indices. They are safe, as they say on the stock exchanges.
- They do not have excessive ambitions when setting their goals., and with little more than the 5% they feel more than satisfied with their performances. In short, what they do not want is to lose a euro from their savings bag.
What goals do conservative investors achieve?
A very different thing are the objectives they pursue and another the goals they achieve in their investments. Most of the time it matches, but it doesn't always have to be. It is regularly the evolution of the financial markets that determines these variables, even when, for example, these may be some of the results of your investments.
Average profitability in operations intended for the medium or long term, which are even based on the payment of dividends each year. Reinforcing the balance of your checking accounts, and in some cases with a certain intensity.
Limit possible losses that can be produced from their taking positions, both in the choice of values, and in the strategies they usually use from the beginning.
By not setting surely ambitious objectives, when they close their operations in the markets, capital gains, they are not spectacular at all, but they only serve to pay a small whim, nothing more.
They usually combine this type of investment with other banking products more defensive cut, as a formula to preserve your savings, even in the most beneficial moments for equities.
The current account of these people generally grows every year, even though they will by no means get rich therefore. Whatever the case, it will be an additional bonus that will have to fix your liquidity problems.
It is difficult for them to contemplate losses in their movements, and if there are small ones. It is because they do not have too many problems to close their positions. They can even take several years with the same investment.
As they are generally people with a very powerful savings bag, what they are creating is a form of strategy to increase it moderately, and without assuming the risks that other classes of small and medium investors will run, fundamentally the most aggressive ones.
