• 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

types of defensive investments

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 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 qualities, which 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 the 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:

the author gives some criteria for putting 100% of the 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 rules for the defensive investor, they are as follows:

  1. Diversification: defensive investors have to do the diversification of their stock minimum of 10 to 30 stocks.
  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 a record of 10-year dividend yield. (Defensive Investor Qualities)
  4. Limit on price: Benjamin gram  Recommended 25 X average earnings over the past 7 years, a maximum of 20 X last year’s 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 gives 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 an 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 a long-term compounding effect. (Defensive Investor Qualities)

Those people don’t have knowledge of finance and balance sheets or accounting, they also become defensive investors by Taking 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

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

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

  • What is Ethereum and Smart Contract?
  • Blockchain Technology Investment
  • Is bitcoin the future of Money?
  • Is Bitcoin a Currency or an Investment?
  • How Bitcoin’s Prices Increases in Past?

Recent Comments

  • How to win friends and Influence People - book summary pro on Security Analysis: Chapter 15
  • Zero to One Book summary - book summary pro on Intelligent Investor: Chapter 14
  • Top 10 best books on Self Help - book summary pro on Intelligent Investor: Chapter 20
  • Top 10 Best books on Money - book summary pro on Intelligent Investor: Chapter 18
  • Best Books on Investing - book summary pro on Intelligent Investor: Chapter 20

Categories

  • Accounting (1)
  • Bitcoin Investing (10)
  • 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:- Investor and Market Fluctuations

50,000 Frenchman can be wrong

One up on wall street Chapter 20

Best time to Buy and Sell Stocks

When to Buy and sell stocks

Common Stocks and Uncommon profits Book Summary

Common Stocks and Uncommon Profits book review

One Up On Wall Street:- Chapter 13

One Up On Wall Street Book: Chapter 13
What is Ethereum

What is Ethereum and Smart Contract?

April 29, 2023 By Laxman Sonale Leave a Comment

Hello friends, in today’s article we discuss Ethereum and Smart Contracts Explain. After reading this you get the good and bad things about Ethereum and Smart contracts. Previous Article on BlockChain Ethereum and Smart Contracts:- After Bitcoin, the second most extensive network is the Ethereum network of blockchain technology. Just like Bitcoin technology saves the […]

Blockchain Technology Investment Good or Bad?

Blockchain Technology Investment

July 13, 2022 By Laxman Sonale 1 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?

Is bitcoin the future of Money?

May 20, 2022 By Laxman Sonale 1 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 Currency or Investment?

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 high in past?

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, if 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 […]

What Gives Bitcoin Value?

What gives Bitcoin Value?

May 16, 2022 By Laxman Sonale 2 Comments

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

Fire Movement

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 for common man

Financial Freedom for common man

April 11, 2022 By Laxman Sonale 1 Comment

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

The Dhandho Investor Chapter 12:- Dhandho 401:- Margin of Safety

The Dhandho Investor:- Chapter 12

April 8, 2022 By Laxman Sonale 3 Comments

Hello friends, in today’s article, we see The Dhandho Investor:- Chapter 12, this chapter is all about the margin of safety while you invest in the stock market. so let’s understand this concept in the author’s words. Previous Chapter 11 Dhandho 401: Margin of Safety – Always In this chapter, the author refers the Benjamin […]

The Dhandho Investor Chapter 11:- Fixate On arbitrage

The Dhandho Investor Chapter 11

April 5, 2022 By Laxman Sonale 1 Comment

Hello friends, in today’s article, we see The Dhandho Investor Chapter 11 Summary. this chapter is all about fixating on Arbitrage. so let’s understand, how value investors can take benefit from this arbitrage. Previous Chapter 10 Dhandho 302:- Fixate On arbitrage (Chapter 11) In starting the author explain, what is the arbitrage, and how value […]

Problems with Cryptocurrency

problems with cryptocurrency like Bitcoin

April 4, 2022 By Laxman Sonale 1 Comment

Hello friends, in today’s article, we see the problem with cryptocurrencies like bitcoin. so if you know this problem, then you understand the whole technology, and how it works. so let’s start Bitcoin Story Problems with Bitcoin:- let’s understand one by one 1) Scalability:-problems with cryptocurrencies like Bitcoin In Bitcoin 1 block size is 1 […]

Footer

Financial Literacy

Stocks to Riches Chapter 13L- Financial Literacy to Become Rich

When to Buy Stock ( by Philip A. Fisher)

When to buy stocks

Loss Aversion & Sunk Cost Fallacy Bias

Stocks to Riches:- Chapter 5 Loss Aversion and Sunk Cost Fallacy Bias

Sources of Information about Company

Annual Reports of the Company: security Analysis

Mutual Funds:- Good or Bad?

Stocks to riches Chapter 9:- Mutual fund good or bad

Follow us

Get new posts by email

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