Definition
Defensive investing is a strategy that focuses on companies whose products and services are in constant demand, regardless of economic conditions. These are typically companies in sectors like utilities, consumer staples, and healthcare.
Why it matters (in Poovi’s context)
It is presented as a core investment strategy in the source, aimed at providing stable returns even during market downturns.
Key properties or components
- Stable demand
- Less sensitive to economic cycles
- Consistent dividends
- Focus on essential goods/services
Contradictions or debates
None.