The Defensive Investor
"Rule No.1: Never lose money. Rule No.2: Never forget rule No.1." -Warren Buffett Before suggesting the strategies a defensive investor must follow in the stock market, let us understand who an investor is. An investor is someone who makes an investment with the expectation of a long term gain. On the other hand, a speculator or a trader reacts to the current market situation and tries to make quick money from fluctuations in market prices. An investor has more knowledge, than a speculator, about the enterprise in which he/she makes an investment. The investor can again be classified as an “ aggressive/enterprising ” investor and a “ defensive/passive ” investor. The trait of an enterprising investor will be his willingness to devote time and care to the selection of securities that are promising and which provides better than average returns. But