• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

The Marathi Investor

Survival is the only way to get Rich

  • Home
  • Stocks Market Basics
  • Investing
    • Investing Books
      • Common Stocks and Uncommon Profits
      • the DHANDHO INVESTOR
      • Security Analysis
      • Stocks to Riches Book Summary
      • Intelligent Investor
      • One Up On Wall Street
      • the DHANDHO INVESTOR
  • Accounting
  • Mutual Fund
  • Bitcoin Investing
  • Contact Us
You are here: Home / Investing / Investing Books / Intelligent Investor / Defensive Investor Qualities

Defensive Investor Qualities

November 8, 2020 by Laxman Sonale Leave a Comment

Hello friends, in today’s article, we see the defensive investor qualities from the intelligent investor book, In this article, the author gives us two types of intelligent investors. They are defensive investors and enterprising investors. Defensive investor qualities that help you to avoid stupidity and save money from losing money in the market.

Defensive investor qualities
Read previous chapter 3: Click here

Defensive investor Qualities:-

The defensive investor has some quality, they are as follows:

  • Emotionally Challenging: If you want to be a passive investor you have to be emotionally stable, so a defensive investor is more emotional challenges. (Defensive Investor Qualities)
  • Detachment from the hullabaloo of the market: They have to courage to ignore the market.

Some knowledge for defensive investor qualities:

  • The risk lies within ourselves: Investor is the enemy of himself, so risk lies within ourselves. So do financially safe and make minimum trading.
  • Asset allocation has nothing to do with age: Making money in the stock market does not need any age. If you want to make an investment in the stock market you need money.
  • Fundamental circumstances: This whole depends upon the fundamental circumstances of our financial life.
  • How much money put in stock: The author suggests that in stock you put your all money of 25% in the stock market. remaining use for your lifestyle. never put 100% of the money in stock, Those only put 100% money who face the last market crash. (Defensive Investor Qualities)
  • Change allocation when your circumstances change.

When to put 100% in Stocks:

author give some criteria for putting 100% money in stock, they are as follows:

  1. Survived a previous bear market.
  2. Did not sell during a previous bear market.
  3. Bought more stocks in the previous bear market.
  4. Set aside cash for at least one year.

author strictly says’s ” Don’t fool yourself into believing that it’s easy if you haven’t lived through a bear market.”

Four rules for a defensive investor:

the author gives us some important rule for the defensive investor, they are as follows:

  1. Diversification: defensive investors have to do the diversification of its stock minimum of 10 to 30 stock.
  2. Large, prominent, conservatively, financially comfortable company: choose this type of company for the defensive investor.
  3. The long record of continuous dividend for 10 years: Those companies have to be the record of 10-year dividend yield. (Defensive Investor Qualities)
  4. Limit on price: Benjamin gram  Recommended 25 X average earnings over past 7 years, maximum 20 X last year earnings.

after this rule, the author gives us some advice for the defensive investor.

 Some advice for a defensive investor:

  •  Buy the company stock at a reasonable price
  • after that then relax on investment
  • Turkish proverb is that “After you burn your mouth on hot milk, you blow on your Yoghurt.

Peter Lynch, the greatest fund manager: peter lynch give the simple philosophy of investing for the defensive or common investor, that is common knowledge of the product that we use daily. after that, you can do its analysis of the stock. (Defensive Investor Qualities)

Benjamin gram gives us more advice for the defensive investor, they are as follows:

And some more advice:

  1. Don’t invest in only one stock, buy a minimum of 10 stocks.
  2. Trade less
  3. Defensive investors win the race by sitting quietly.
  4. Realizing that you can’t predict the future.
  5. Dollar-cost averaging: This concept we see in the other article.

If you want to become a defensive investor you have to follow this rule and also advice. if you follow this you will be a rich man after long term compounding effect. (Defensive Investor Qualities)

Those people don’t have knowledge of finance and balance sheet or accounting, those also become defensive investor by Taking by minimum charges of INDEX FUND. So this is all about the defensive investor.

Read more: 15th points of an outstanding company

 

Seth Klarman 30 big points on investing

facebookShare on Facebook
TwitterTweet
FollowFollow us

Filed Under: Intelligent Investor Tagged With: benjamin graham intelligent investor pdf, benjamin graham method, benjamin graham net worth, benjamin graham quotes, benjamin graham ratio, benjamin graham students, Benjamin Gram, defensive investment examples, defensive investment strategy 2020, Defensive investor, defensive investor graham, defensive investor vs enterprising, defensive portfolio 2020, defensive stocks, dollar, intelligent investor - chapter summary, intelligent investor summary pdf, intelligent investor: chapter 5, investor, peter lynch, stocks, the intelligent investor - chapter 1 summary, the intelligent investor chapter 12 summary, the intelligent investor chapter 8 summary, the intelligent investor chapters, the intelligent investor summary, trading, types of defensive investments, value investing, warren buffet, what is defensive investments

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Search Post

Please follow & like us :)

Facebook
Facebook
fb-share-icon
YouTube
Instagram
Twitter
Visit Us
Follow Me
Tweet
Pinterest
Pinterest
fb-share-icon
LinkedIn
LinkedIn
Share
Telegram

Recent Posts

  • Blockchain Technology Investment
  • Is bitcoin the future of Money?
  • Is Bitcoin a Currency or an Investment?
  • How Bitcoin’s Prices Increases in Past?
  • What gives Bitcoin Value

Recent Comments

  • Essentialism Book Summary - book summary pro on One Up On Wall Street: Chapter 20
  • UnScripted Life Book Summary - book summary pro on Intelligent Investor: Chapter 20
  • Deep Work Book Summary - book summary pro on One Up On Wall Street: Chapter 1
  • Millionaire Success Habits Book Summary - book summary pro on The Dhandho Investor Chapter 11
  • Why the Rich are getting Richer Book Summary - book summary pro on Stocks to Riches Chapter 4:- Introduction to Behavioural Finance

Categories

  • Accounting (1)
  • Bitcoin Investing (9)
  • Common Stocks and Uncommon Profits (12)
  • Intelligent Investor (19)
  • Investing (10)
  • Investing Books (1)
  • Mutual Fund (1)
  • One Up On Wall Street (22)
  • Security Analysis (16)
  • Stocks Market Basics (1)
  • Stocks to Riches Book Summary (11)
  • the DHANDHO INVESTOR (13)
  • Uncategorized (1)

How to deal with Mr. Market

The Intelligent Investor: chapter 8

50,000 Frenchman can be wrong

One Up On Wall Street: Chapter 20

Best time to Buy and Sell Stocks

The Best time to Buy and Sell Stock
Common Stocks and Uncommon Profits book review

Blockchain Technology Investment

July 13, 2022 By Laxman Sonale Leave a Comment

Hello friends, in today’s article we see the Blockchain Technology Investment in form of Computer science and understand the basics and their goals. We see in the previous article, that the main goal of making a bitcoin is to remove the Bank to make payments person to person. to complete this goal, one system is […]

Is bitcoin the future of Money?

May 20, 2022 By Laxman Sonale Leave a Comment

Hello friends, in today’s article, we see whether is bitcoin the future of money? what happens in the future if cryptocurrency is ruled by the government, let’s understand all questions answered in this blog. Previous Article on Bitcoin Is Bitcoin the future of money:- Before starting this discussion, I read a previous article on bitcoin, […]

Is Bitcoin a Currency or an Investment?

May 20, 2022 By Laxman Sonale 1 Comment

Hello friend, in today’s article, we see is bitcoin a currency or an investment? and what is the effect on our economy and how we can use it for our best use? so let’s see each and every factor. Previous Bitcoin Article is Bitcoin a Currency or an Investment?:- before the start, let’s understand these […]

How Bitcoin’s Prices Increases in Past?

May 20, 2022 By Laxman Sonale 1 Comment

Hello friends, In today’s article, we see how bitcoin’s prices increase in the past, what are the reasons behind that, and most important question, Is there any chance bitcoin prices goes up in the future. so let’s see them one by one. Previous Bitcoin Article How bitcoin’s prices increase:- so, friends, anything product price depends […]

What gives Bitcoin Value

May 16, 2022 By Laxman Sonale 1 Comment

Hello friends, in today’s article, we see what gives bitcoin any value. If bitcoin has any value, so then what things, give the values. so let’s understand step by step. Previous Bitcoin Article Fiat currency and bitcoin value:- In history, Food, animal, gold, and silver coins were used as currency. Because Food is valuable, we […]

FIRE Movements

FIRE Movements in Life

May 1, 2022 By Laxman Sonale Leave a Comment

Hello friends in today’s article, we talk about the FIRE Movements. FIRE means Financial Independent and Retire Early). Everyone wants to retire early, so for that, we writing this blog. so let’s understand how to get retire early. so let’s start Financial Freedom Fire movements:- Financially Independent, Retire Early) The FIRE movement, the concept was […]

Financial Freedom

April 11, 2022 By Laxman Sonale 1 Comment

Hello friends, today we talk about Financial Freedom. Stock Market helps you to achieve this goal. so let’s understand it what is the real meaning of financial freedom, and how can we achieve that? Financial Literacy What is the real meaning of Financial Freedom? In simple words, says, Financial freedom is a thing, in that […]

Footer

Financial Literacy

Financial Literacy- to become rich

Loss Aversion & Sunk Cost Fallacy Bias

Loss Aversion

Mutual Funds:- Good or Bad?

Mutual Funds

When to Buy Stock ( by Philip A. Fisher)

When to buy stocks

Sources of Information about Company

Annual Reports of the Company: security Analysis

Follow us

Get new posts by email

Copyright © 2023 · News Pro on Genesis Framework · WordPress · Log in