Some stocks grow fast. Others survive storms.
Defensive investing is about the second kind.
When markets get rocky, you want reliable companies with steady cash flow, strong moats, and less volatility. Morningstar helps you find them—and build a portfolio that can hold its ground.
Here’s how.
TLDR: Why Morningstar Is Built for Defensive Investing
- Screen for low-volatility, high-quality stocks and funds
- Focus on companies with wide moats and consistent earnings
- Use risk ratings and drawdown data to evaluate resilience
- Read analyst reports on sector durability and downside risk
- Track portfolio balance with X-Ray to avoid hidden risk
Read our review and learn how you can get an exclusive discount here.
Screen for Defensive Sectors
Some sectors historically outperform during downturns:
- Consumer staples
- Utilities
- Healthcare
- Dividend-paying large caps
Morningstar lets you filter for stocks and funds in these sectors—then rank them by star rating, moat, and risk profile.
This narrows your list to businesses built for bad weather.
Look for Wide Moats and Low Volatility
The best defensive stocks tend to:
- Generate consistent cash flow
- Hold dominant market positions
- Have pricing power and low debt
Morningstar’s moat ratings and uncertainty scores help you filter for these exact traits.
Use Drawdown and Risk Metrics
Price swings matter more in a downturn.
With Morningstar, you can assess:
- Maximum drawdown during past crashes
- Standard deviation and downside capture
- Beta relative to market
This lets you find not just good companies—but steady ones.
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Read Analyst Commentary on Stability
Morningstar analyst reports often highlight:
- Recession resistance
- Industry-level risk (or lack thereof)
- Dividend safety and management conservatism
These reports help you make decisions based on durability, not just potential.
Build a Balanced Portfolio with X-Ray
Defensive investing isn’t about going all-in on one sector.
Use Morningstar’s Portfolio X-Ray to:
- Check for concentration risk
- Balance growth with safety
- Monitor sector exposure and overlap
You can tilt your portfolio toward resilience without abandoning diversification.
The Cost? Practically Pays for Itself
Morningstar Premium is $34.95/month—or just $249/year if you go with the annual plan. (Plus, you can get $50 off with this exclusive deal.)
Think about it: one solid insight from a Morningstar analyst could help you dodge a costly mistake or catch a breakout stock early. That alone can cover the subscription—and then some.
If you’re serious about building long-term wealth, this isn’t an expense.
It’s an investment in making smarter decisions.
Key Takeaways
- Defensive investing is about stability, not speed
- Morningstar helps you find companies built for rough markets
- Tools like moat ratings, volatility metrics, and X-Ray keep you balanced
- Analyst commentary gives you the context behind the numbers
If you want your portfolio to survive when others panic—
Defensive investing with Morningstar is your edge.
Because staying in the game beats swinging for the fences.
Every. Single. Time.
[GET AN EXCLUSIVE AT MORNINGSTAR]
Here are additional investment research tools to check out. I’ve always been a big fan of Seeking Alpha. But Morningstar has it’s advantages.
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