Presently, there are 3 features that make some stocks the safest ones in the world:

1. Reliable financial situation
It is exactly the same as if you were referring to your personal finances… the cherry-on-top when talking about a solid financial condition in business is when a company has a lot of cash and little or no debt.

Take Microsoft, for example. It is certainly one of the safest stocks worldwide because it is in a prime financial situation. It possesses $36.8 billion in cash, stocks and bonds, and less than $6 billion in debt.

Microsoft could pay its debt and still own over $30 billion. Talk about security!

No matter what happens in the world, Microsoft is never in crisis, and its shareholders know it.

Other companies that have a solid financial situation are:

- Johnson & Johnson (JNJ)
- Intel (INTC)
- Costco (COST)
- Automatic Data Processing (ADP)
- TJX Companies (TJX)

But this is just the tip of the iceberg… the safest stocks are also characterized by…

2. Generation of more cash than they reinvest to keep the companies going
Personally, do you like to run out of money four days before you get paid again, or do you rather end the month with $2000 in your pocket?

These $2000 are excess cash flow, and you certainly feel safer when you have them, right?

In the same way, companies that produce excess cash flow yearly are safer than any other.

3. Higher value than their stock price
But not just any value percentage, we’re talking about companies that are worth at least 50% more than their stock price.

Take Intel at $18 a share, for example. Currently, the stock market states that Intel’s business is worth around eight times the excess cash flow it is able to produce in a year, and this is a ridiculously low price.

A lot of investors think that they have to risk a lot to make the big bucks in stocks, but it is exactly the opposite. You should get rid of the risk of losing as much as possible.

If you only invest in the safest stocks you will retire rich, and could even probably retire earlier.

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