ELI5: Explain Like I'm 5

Conservative Formula Investing

Conservative formula investing means using a simple and safe strategy for investing your money. It's like playing with building blocks - you arrange the blocks in a certain way to make a sturdy tower.

In investing, you use a special formula to choose which companies to invest in. This formula looks at certain things, like how much money the company makes, how much they owe, and how much their stock price has gone up or down in the past.

Then, you choose companies that have good scores according to the formula. This is like choosing the sturdiest building blocks for your tower. You want to make sure the companies are safe and won't fall apart easily.

Conservative formula investing is a good strategy because it helps you choose companies that are likely to do well in the future. It's like building a strong tower that won't fall down easily.