Avoid all-out attack when investing

Avoid all-out attack when investing

Attacking teams win matches but defensive teams win championships. You hear it all the time in professional sports, and the same is true of investing.

It will feel boring, but it is important to build up your investments starting with defense in mind. Human nature oscillates between fear and greed. Oh, and peer pressure.

This tends to lead us to invest in shiny objects that promise great return. Like any attack-minded team, these shiny objects will score goals for you. But over time the odds are against you winning consistently. And sometimes, if you are unlucky, and get hit by a swift counterattack by opposing forces, you could get wiped out.

Largest deal of the quarter in the MENA region was the acquisition of BP PLC-Block 61 based in Oman from Pttep Mena Ltd for $2.59bn

The ideal situation is to create a mix of defense and attack. Everybody will have their own ideas of what actually constitutes defensive and attacking investments. There is a mathematical concept called standard deviation which is an excellent guide, but I shall not bore you with it here.

But it is sufficient to say history tells you bonds and equities issued by large well-run companies are defensive investments, as