A Capital-Based Approach by Gabriel Gonzalez
So far in this series of investing primers, we covered investing for safety and investing for income. As we move on to investing with the goal of achieving capital gains, we look at the basic theory behind stock investing.
There’s comfort to be had in the certainty of routine. In my two previous articles in the October 2018 and January 2019 issues, I discussed the investing objectives of safety and income, which rely on the consistent, timely return of yields via bonds and, in a limited capacity, some stocks. The capital-based objective, on the other hand, is an investment goal that requires a much more dynamic, hands-on approach and perhaps even a bit of clairvoyance ...