For private investors who want to build wealth on the stock market without taking on excessive risks, the following 5 stock tips are particularly relevant:
Invest for the Long Term and Maintain Patience
A long-term investment horizon helps to balance price fluctuations and benefit from the average market return. Long-term investments like stocks or ETFs offer good opportunities for wealth growth despite short-term volatility.
Diversification to Minimize Risk
Spread your capital across different asset classes (stocks from various sectors and regions, bonds, ETFs) to diversify your risk. This way, losses in one area can be offset by gains in another.
Focus on Dividend-Paying Quality Companies
Invest in companies with stable earnings and strong pricing power that pay dividends regularly. These provide predictable ongoing income sources and can deliver stable returns even in uncertain times.
Regular Review and Adjustment of the Portfolio
Regularly adjust your investments to reflect changing market conditions as well as your personal goals. A flexible portfolio with various investment strategies (e.g., value or quality strategies) can help to better capitalize on opportunities.
Combination of Safe Investments with High-Yield Stock Investments (Terrace Model)
Complement your stock portfolio with safe investment forms like fixed-term deposits or bonds for stability – this way, you benefit from security while simultaneously enjoying growth potential through stocks.
These tips enable private investors to find a balanced ratio between safety and return – crucial for sustainable wealth building on the stock market without taking on excessive risk.
Additionally, it is advisable to widely use low-cost index funds (ETFs), as they allow for simple diversification and can achieve attractive long-term returns.
These recommendations are based on current expert opinions for investing in 2025 as well as proven strategies for private investors.