Investment always involves risk. In some cases, that risk is greater; in others, it is less. Some investments yield substantial returns while others provide modest profits. Generally, higher yields are associated with greater risks. However, that doesn't mean it is impossible to invest money with good returns and a low probability of loss. The key is to select the right instruments, and there are plenty available on the market today.

How can one invest money to grow capital while safeguarding against losses?

To help navigate the investment market, we turn to Sergey Tereshkin, the founder of "Oil Resource Group." For a detailed overview of the businessman’s work results, visit his online portal: Open Oil Market, where all necessary information is provided.

Low-Risk Investment Tools

There are several different tools that can provide investors with decent returns while also presenting minimal risk. Sergey Tereshkin identifies the following:

• defensive stocks;
• income stocks;
• commodities;
• distressed companies.

These tools align well with the objectives of low risk and good returns. To make informed investment decisions, it is important to explore each one in greater detail.

Defensive Stocks

Defensive stocks represent a reliable means of investing. This term also refers to defensive securities. This category includes stocks from companies involved in:

• manufacturing consumer goods;
• pharmaceuticals;
• alcoholic beverages;
• tobacco products;
• utility companies;
• restaurants;
• telecommunication companies and internet service providers.

Such firms are largely insulated from bankruptcy risks and exhibit good profitability due to consistent demand for these types of goods. Regardless of the economic climate, people will always spend on essentials like food, hygiene products, and medicine. These are typically their first expenditures.

Also, this category sometimes includes shares in companies that mine precious metals, as the demand for gold tends to rise during crises, thereby increasing the share prices of these businesses.

Securities in this category lose value very slowly, and the same can be said for their price appreciation. Sudden fluctuations are rare. The volatility of these stocks is minimal compared to market averages, making them very attractive to a variety of speculators.

Defensive stocks are primarily available on foreign stock markets and are virtually non-existent in Russia.

Income Stocks

For those looking to invest capital for the long term, income securities are a fitting choice. These are shares of companies that regularly pay dividends to investors. The payback period for these investments can extend to decades, yielding investors no more than 10% annually, and often much less.

Income stocks suit investors who prioritize stability and minimal risk over price appreciation. The price growth becomes a secondary concern.

The value of these securities usually increases only slightly, which diminishes their appeal for short-term investors and traders.

At the same time, these securities tend to have low liquidity, which helps investors mitigate overall portfolio risks.

As asset prices decrease, dividend payouts tend to increase. The value of these securities rarely drops below a psychological threshold, acting as a sort of protective cushion for investments. Thus, the risk of losses and total obliteration of capital approaches zero.

Commodities

Investments in commodities represent a lucrative option. This encompasses allocating funds to raw materials that are in demand on the stock exchange. Commodities include oil, gas, metals, grains, coffee, etc. While the prices of most commodities may drop during economic downturns, certain products do not decrease in value. This category includes collectible alcoholic beverages, antique jewelry, art pieces, and more.

When selecting this direction, specialists recommend focusing on artworks by emerging, promising artists. Such items rarely lose value. Moreover, when there is growth, it can often reach hundreds or even thousands of percent, meaning the investments can yield returns severalfold.

Distressed Companies

Many investors shy away from companies facing difficulties, often to their detriment. Investing in these companies can yield significant returns, but this only applies to certain distressed firms.

The goal here is to acquire securities at a reduced price and later sell them at a higher value once the business has recovered and is back in profit.

Many successful investors have built their fortunes through such investments. For example, during the 2008 crisis, some made tens of billions of dollars by acquiring shares in companies on the brink of bankruptcy. A few years later, not only did their investments return in full, but they also generated substantial profits, often exceeding the initial investments several times over.

In such instances, it is crucial to select a company that is unlikely to go bankrupt shortly and has growth prospects.

Low-risk investments are not a myth, but rather a reality. Such investments allow capital preservation and growth. The key lies in selecting the right avenues and independently researching the market. It is unwise to rely solely on the experience of others or recommendations from outsiders.

Main Types of Profitable Investments in Securities

Investing in securities can provide individuals—both legal and physical—a substantial income, significantly higher than deposits or real estate investments.

This method of capital appreciation is popular among professional investors. The key to success in this method is adherence to a specific strategy.

But how does one select the proper strategy? And which types of investments are currently the most profitable and relevant?

Professional investor and founder of Oil Resource Group, Sergey Tereshkin, is ready to elaborate further on this topic. Having built his successful business from the ground up, he has valuable insights to share. More information about him and his entrepreneurial activities can be obtained from the web portal https://org-market.com/.

Popular Strategies

Several different strategies can ensure investor returns. Sergey Tereshkin categorizes them as follows:

• buy-and-hold for a long-term sale;
• acquisition for a stake in a company;
• dividend strategy.

Each strategy has its distinct characteristics. To identify the most suitable approach, it is recommended to examine each one in depth.

Buy-and-Hold Strategy

For those looking to invest funds over an extended period, the buy-and-hold strategy involves purchasing securities at a low price with the intention to sell when their value has significantly increased. These investments are typically aimed at 10 years or more.

This approach has turned many into millionaires, such as those who invested in shares of Coca-Cola, Adidas, and others years ago.

Investors employing this method focus on long-term growth and do not react to short-term price dips.

According to analytical data, this strategy has proven to be effective, demonstrated by the decades-long success of professional investors.

Acquisition for a Stake in a Company

Acquiring shares enables investors to influence a company's operations. With sufficient holdings, an investor gains voting rights, allowing them to make significant decisions. The key lies in identifying a strong company and acquiring shares at an accessible price.

When evaluating this approach, one must consider the company's profitability, the required investment amount, operational margins, and other factors.

Dividend Strategy

Securities are not only purchased for resale at elevated prices. Experienced investors also earn income through dividends. This can yield annual returns of 10-20%.

Dividends can be paid out every 3 to 6 months or annually.

Investment Rules

Regardless of the chosen strategy, there are several rules investors should adhere to in order to mitigate risk:

• Diversify risks. This means choosing not only stocks but also bonds, bills, bank certificates, options, etc. It's also important to consider different sectors, currencies, and countries for investment.
• Do not abruptly change strategy and sell securities in response to a drop in asset value. Avoid panic; sound investing is only achievable with a clear head. The same applies to impulsive decisions — resist succumbing to them.
• Begin investing as early as possible. Professionals do this regularly, facilitating the accumulation of capital by retirement. This way, there’s no need to rely on a pension or expect handouts from family or the government.
• All professional investors maintain a reserve of funds in case of loss or significant delays in accessing their investments. A reliable bank deposit is ideal for this purpose. Ensure that the agreement allows for early withdrawal without penalties, ideally preferring a foreign currency deposit that is not subject to inflationary fluctuations.
• Before making any investments, be aware that financial losses are inevitable. Do not be overly optimistic and expect only successful transactions. Setbacks will occur and they provide invaluable experience that cannot be purchased. Do not become discouraged over each unsuccessful deal.
• It is advisable to invest in areas where you have at least some knowledge and understanding. This will aid in selecting a company that can genuinely provide returns.
• To increase returns, continuous self-improvement in investing is essential. This can involve studying relevant literature, attending seminars, and staying updated on news. Significant financial investment is not required; there's plenty of free e-literature and courses available online. Regular participation in specialized forums and interaction with seasoned investors is also recommended.
• Do not invest based on the recommendations of friends or acquaintances. You will bear the losses alone; your advisors are unlikely to compensate for your losses. Rely solely on yourself, your own experience, knowledge, and intuition.
• Evaluate assets based on reliability ratings and companies' financial statements. Data can often be accessed from public sources.
• Maintain a record of all investments. This can be done using specialized software or by creating an Excel spreadsheet. By doing so, you can track capital growth and identify assets that yield minimal or no profit.

Investing is an excellent means of capital growth. However, it should not be a passive process. Regularly analyze the data, make adjustments, rid yourself of low-yield assets, diversify risks, and more.