Johnson & Johnson, Ben Graham, And Defensive Stocks


  • Under current market conditions, our view is that playing defensive is more important than pursuing growth.
  • Against this overall backdrop, this article explains why Johnson & Johnson is a good defensive stock.
  • Johnson & Johnson satisfies all the requirements that Benjamin Graham promoted for picking defensive stocks.
  • Notably, it’s also trading at a sizable discount from the overall market and also the Graham P/E (by about 12%).

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We keep reminding our readers – and ourselves – that in investing, avoiding losses is more important than achieving gains (even though the latter always FEELs better). The reason is a simple math fact – because compounding is mathematically asymmetric. A 10% loss requires more

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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