Graham's Defensive Investor
Benjamin Graham's term for the investor who deliberately chooses to minimize the time spent on individual security selection in exchange for accepting market-average returns. The defensive category is defined by temperament and time budget, not by net worth -- a wealthy investor with no hours to dedicate to security analysis is correctly classified as defensive. The honest portfolio for this category is an index-fund-based allocation with periodic rebalancing, and Graham was direct that this is a respectable choice rather than a consolation prize for those who cannot do active work.
Lessons that use this term
Related terms
Ambiguity Aversion · Anchored Assumption · Asset Beta · Bank ROE Spread · Banker Pitch Deck · Beta
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