The best way to pick a defensive stock

Switch off your BlackBerry, turn off the TV, and stop reading the newspaper. You are taking in too much information and it's forcing you to make bad investment decisions. So what should you be focused on?

Switch off your BlackBerry. Turn off the TV. Stop reading the newspaper. You are taking in too much information, and it's forcing you to make bad investment decisions.

It sounds like a hypnotist's mantra, but the advice comes from behavioural investor James Montier, the respected ex-Soc Gen analyst and a member of GMO's asset allocation team. He suggests you focus on three basic tests instead.

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Jody Clarke

Jody studied at the University of Limerick and was a senior writer for MoneyWeek. Jody is experienced in interviewing, for example digging into the lives of an ex-M15 agent and quirky business owners who have made millions. Jody’s other areas of expertise include advice on funds, stocks and house prices.