High Yield Safe Investments?

Question - High Yielding Safe Investments

Do you know of any high yield safe investments? Trading stock options or not. Or is such a thing even possible? I'm curious to know your thoughts on the subject.

Answer

Thanks for the great question.

It really depends on what you consider high yield to be. I'm assuming you're not talking about money market accounts or CDs that pay a percentage or two higher than the national average.

I'm assuming instead that you're probably talking about something more along the lines of double-digit returns or income with little, if any, risk of losses.

Unfortunately, when it comes to investing in general, and especially when you're trading stock options, there really is no such thing as high yieling safe investments.

Unless . . .

If you're patient, if you do your due diligence, if you commit to investing for the long term in only the highest quality companies that you can identify, and if you don't overpay for the stock, you eventually will end up with some high yield safe investments after all.

If you take a high quality investment, acquire it at an attractive price, and either allow it enough time to grow organically (e.g. dividend growth investing), or devise certain ways to generate additional returns or lower your original cost basis or manufacture perpetual rebates/refunds, etc. (i.e. Leveraged Investing), you absolutely can end up with some pretty impressive investments.

Remember what investing really entails - going without something in the short term in exchange for (hopefully) gaining a whole lot more in the long term.

And if you're really interested in high yield conservative investments, you might want to read this related site article that details why successful investing is so much easier (and superior, dare I say?) than successful trading.

Best of luck to you -