Many investors look to stack their share portfolios with ASX shares. After all, one of the biggest fears for any investor is buying a company that ends up going bankrupt. Losing most or all of your capital can have a catastrophic impact on an investor's wealth and retirement prospects.
Not to mention their confidence. As such, many investors like to buy defensive ASX shares – companies with inelastic earnings bases that are less likely to run into serious trouble during a or other economic shock. But finding these shares is easier said than done.
No one buys any ASX share expecting it to be a lemon. So today, let's talk about two ASX shares that, in my opinion, display some of the most defensive qualities on the ASX. 2 defensive ASX shares that lower-risk investors can feel comfortable buying First up is a company that needs little introduction.
Telstra is, by far, the largest purveyor of services in Australia. It has a clear market lead in both the mobile telephony and fixed-line internet markets across the country. Telstra is a rather strange company in that it used to be a government-owned monopoly.
Telstra's days of being the sole provider of communication services in Australia are long gone, yet it retains some advantages that its history has lent it. Many customers in regional and rural Australia simply have no choice but to use Telstra, given its almost universally regarded superiority when it comes to network coverage. Until this changes, I don't see Telstra losing .