Why the defence business makes for a defensive play
Companies in the business are recession-proof, generate high returns on equity, and are efficient in the use of assets. What's not to like?
Add BT as a preferred sourceWAR is not something that anyone likes to think about or get involved in. Most of us, I am sure, would much prefer peace. I know I would. Consequently, investing in the trappings of war can make some people a little uncomfortable. Nobody wants to profit from the misery of others.
There is another way of looking at it, though. Every country has the right and a duty to protect its sovereign borders and its people. That is where defence spending comes in.
It has as much to do with protection as it has about aggression. Without proper defences, hostile countries could ride roughshod over those that are less able to defend themselves.
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