3 Great Stocks for Low-Risk Investors
Investment goals may need to change depending on a person's stage in life. Warren Buffett has said, "Never risk what you have and need for what you don't have and don't need." Investors who have grown wealth over decades may find it hard to shift gears in later years to lower risk in their portfolios.
But reducing risk doesn't need to mean putting money in bonds or stashing it in bank savings accounts. Though there is risk in any stock investment, you can minimize it and still do well, beating the market even when that no longer needs to be the goal. Three stocks that can get you there are McCormick (NYSE: MKC), NextEra Energy (NYSE: NEE), and Costco Wholesale (NASDAQ: COST). Each has outperformed the S&P 500 over the past 10 years with lower risk, as measured by relative volatility, or the beta coefficient. A figure below 1.0 is less volatile than the index, and 10-year beta for these names ranges from 0.23 with NextEra to 0.62 for Costco.
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Source Fool.com
