Defensive Company

A company believed to be able to weather downturns and perform well in a recession due to inelastic, stable demand for its goods and products. They are usually consumer staples, utilities, healthcare and so on.

Defensive companies are believed to be good additions to an investor’s portfolio as they are usually low-risk investments.  Some companies may be both defensive and cyclical, i.e. aerospace&defense companies that have a stable demand for their products but are also cyclical, with their profits changing with different policies.

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