What Is the Best Type of Investment?

Video Transcript

"Hi, I'm Roger Groh with Groh Asset Management. We're here today to talk about the best type of investment. Well, there really is no best type of investment. Each one of you has different risk profiles. An older person can afford much less risk than a younger person, and therefore, the best company to buy depends upon where you are on that risk curve. I would suggest that you have significant conversations with any broker that you know -- stockbroker that you know -- or that you do research on your own at length on any company that you're considering putting your money into. Be very careful. They go up and down rapidly and significantly, and you don't want to lose much. Now, in our firm, one of the characteristics of the types of companies that, typically, we invest in are those that sell more year...each year of whatever it is that they make. And as a result of the consistent increases in sales, that they increase cash flow regularly. Now, you think about the kinds of industries where that...it is likely to happen. You know, perhaps the electric utility business. Perhaps the telephone business. Perhaps the drug business. Perhaps the consumer product business in products that you use every day. Soap, maybe, or in our house, ice cream. Hope that helped, and thank you for spending a little bit of time with me. I'm Roger Groh."