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Paul Tracy

Paul has been a respected figure in the financial markets for more than two decades.

Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 2 million monthly readers. While there, Paul authored and edited thousands of financial research briefs, was published on Nasdaq. com, Yahoo Finance, and dozens of other prominent media outlets, and appeared as a guest expert at prominent radio shows and i...

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Updated January 16, 2021

What is Preservation of Capital?

Preservation of capital is an investment strategy that focuses on preventing any losses of an investment's face value.

How Does Preservation of Capital Work?

A preservation of capital is a conservative investment philosophy that invests in very safe securities, such as Treasuries (T-Bills), which will not lose any value and only gain enough to counter the effects of inflation.
 
Preservation of capital is usually used by investors on fixed incomes, retirees who are not adding to their investment principal and cannot risk any losses, or institutions or organizations with limited endowments.

Why Does Preservation of Capital Matter?

Preservation of capital is an important investment philosophy at the right time and for the right type of investor.  It recognizes the needs of the investor to maintain his or her capital, protecting against any volatility in the markets, and ensuring that capital is available when it is needed, usually in the short term.

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At InvestingAnswers, all of our content is verified for accuracy by Paul Tracy and our team of certified financial experts. We pride ourselves on quality, research, and transparency, and we value your feedback. Below you'll find answers to some of the most common reader questions about Preservation of Capital.
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Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 2 million monthly readers.

If you have a question about Preservation of Capital, then please ask Paul.

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