Stock Picks for the Defensive Investor By Tim Melvin About this article: In The Intelligent Investor, Ben Graham made a distinction between defensive and aggressive investors. The more aggressive types, like me, spend their time looking for companies trading below net current asset value or cash on the books as well as liquidation arbitrage and workout opportunities. The more conservative, less active investors were what Graham called defensive investors, and he laid out specific criteria for how they should invest their long-term investment portfolios. Since so many investors and even traders have become wary of stocks the past two years, I thought it might be worthwhile to review his rules and look for stocks that fit the defensive approach to investing. In general, Graham thought that conservative investors should look for large, stable companies with solid histories of earnings and dividends. He wanted these companies to have strong balance sheets and adequate capital. A defensive stock should be purchased... Or, call us at 1-866-321-TSCM (8726) Monday-Friday, 8 a.m.-6 p.m. ET. Outside the U.S. and in Canada, call 1-212-321-5200.

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