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2. Quality and Dividends: Defensive investors should prioritize quality stocks
with a history of dividend payments.
3. Avoid Speculative Stocks: Stay away from speculative or highly volatile stocks,
as they carry more risk.
4. Dollar-Cost Averaging: This strategy is reiterated as an effective method for
defensive investors to accumulate shares over time.
5. Emphasize the Long Term: The defensive investor should maintain a long-term
perspective and avoid reacting to short-term market fluctuations.
Chapter 6: Portfolio Policy for the Enterprising Investor: Negative
Approach
1. Enterprising Investor: Graham introduces the concept of the enterprising
investor, who is willing to put in more effort and analysis.
2. Seeking Bargains: Enterprising investors should actively seek out
undervalued securities and take advantage of market inefficiencies.
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