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If you had to pick one defensive stock to own, which one would you pick out of these? Watch

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    Unilever, Reckitt Benckiser, Johnson and Johnson, Procter and Gamble, Diageo

    I like Reckitt Benckiser, some very powerful brands that don't have much competition (like Durex) and very high margins (condoms and Nurofen Plus can be expensive).

    Johnson and Johnson seem nice to me as well (owners of Calpol and Listerine)

    Unilever has the most diverse portfolio from Dove to Lynx to Hellman's Mayonaise. But they own a lot of crap I don't like.
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    Anyone?
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    Johnson and Johnson, as its already a well established brand and its in an area where most people wouldn't cheap out, their children's health and it expands in to more than one area within health and care meaning its customer outlet can expand between all ages where as brands such as Durex are tailored to a more specific audience. Furthermore, I think the average human will buy more shampoo in a regular week that condoms so its more stable. One other point is that there isn't much revolutionary work to be done with shampoo whereas if a competing brand like Trojan developed a more stronger and better condom then sales might deplete for Durex. Overall, J&J seems a lot more stable as its a much more secure investment, unfortunately though the thing is there's not a lot of money to be made investing in these companies anymore as they have already reached their peak and are just in a plateauing state.
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    (Original post by momoneyme89)
    Anyone?
    Johnson and Johnson, as its already a well established brand and its in an area where most people wouldn't cheap out, their children's health and it expands in to more than one area within health and care meaning its customer outlet can expand between all ages where as brands such as Durex are tailored to a more specific audience. Furthermore, I think the average human will buy more shampoo in a regular week that condoms so its more stable. One other point is that there isn't much revolutionary work to be done with shampoo whereas if a competing brand like Trojan developed a more stronger and better condom then sales might deplete for Durex. Overall, J&J seems a lot more stable as its a much more secure investment, unfortunately though the thing is there's not a lot of money to be made investing in these companies anymore as they have already reached their peak and are just in a plateauing state.
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    (Original post by Jassy16)
    Johnson and Johnson, as its already a well established brand and its in an area where most people wouldn't cheap out, their children's health and it expands in to more than one area within health and care meaning its customer outlet can expand between all ages where as brands such as Durex are tailored to a more specific audience. Furthermore, I think the average human will buy more shampoo in a regular week that condoms so its more stable. One other point is that there isn't much revolutionary work to be done with shampoo whereas if a competing brand like Trojan developed a more stronger and better condom then sales might deplete for Durex. Overall, J&J seems a lot more stable as its a much more secure investment, unfortunately though the thing is there's not a lot of money to be made investing in these companies anymore as they have already reached their peak and are just in a plateauing state.
    That's for that advice. J&J was looking to be my favourite, but I always worry about the GBPUSD exchange rate. Apparently Yelen will raise the base rate, so that should in theory strengthen the dollar (which is good for me). It's just the pound has devalued so much against the dollar, any kind of strengthening of the pound will screw me over (10-15% loss).

    Yeah these stocks are consumer defensives for a reason, boom or bust, they will slowly trudge along. It's more of a "safe" place to park my money. Like I know that these stocks will most probably take 6-7 years to double my money, but it's the safety I am seeking. Though bonds might become more attractive in 3-4 years time, when interest rates are at more normal levels.

    Reckitt Benckisser (R&B) have great margin I feel still. They can sell a pack of 12 condoms for £12 and people aren't going to take the "cheaper" option in condoms knowing the risks. I just don't see the same profit margin with J&J.
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    (Original post by momoneyme89)
    That's for that advice. J&J was looking to be my favourite, but I always worry about the GBPUSD exchange rate. Apparently Yelen will raise the base rate, so that should in theory strengthen the dollar (which is good for me). It's just the pound has devalued so much against the dollar, any kind of strengthening of the pound will screw me over (10-15% loss).

    Yeah these stocks are consumer defensives for a reason, boom or bust, they will slowly trudge along. It's more of a "safe" place to park my money. Like I know that these stocks will most probably take 6-7 years to double my money, but it's the safety I am seeking. Though bonds might become more attractive in 3-4 years time, when interest rates are at more normal levels.

    Reckitt Benckisser (R&B) have great margin I feel still. They can sell a pack of 12 condoms for £12 and people aren't going to take the "cheaper" option in condoms knowing the risks. I just don't see the same profit margin with J&J.
    Interesting, anyway i'm not sure exactly how much money you are investing or if you would consider splitting it into other companies, but maybe consider investing in Apple as they are gonna be unveiling the iphone 7 soon so they might see a little more traffic than usual. Mostly if I was you I would invest in two companies at least, such as a traditional giant in its field ie R&B or J&J but also something in modern technology like tesla as they are currently the leaders in modern cars. Another point of interest that may sway you is that Apple is also rumored to be dabbling into the world of cars.

    I think one problem you may face is you are (or from the sound of it) investing all you eggs in one basket which seems like a idea too safe to make much money.
 
 
 
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