How to make your money go further
Booze is one of the last things to be struck from many budgets in the wake of economic uncertainty. Politicians can be useless, currency declining and central banks struggling but the pub will always have our backs. That is one of the reasons why drinks maker Diageo (LON: DGE) is a defensive stock and its shares tends to do well in times of economic distress. Indeed, the group’s share price is up 13% in the year to date and 66% since the UK voted to leave the EU in June 2016.
It’s not just the slightly addictive qualities of its products that makes Diageo defensive. The alcohol specialist is a global giant, generating no more than 27% of its revenue from any one geography. The internal troubles of single countries (or European trading blocs) therefore don’t cause it too much grief.
It also has a very strong suite of brands which makes it hard for competitors to take market share.…
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