One important lesson that many have learnt from the ongoing Euro Zone turmoil is the importance of owning high quality stocks in their portfolio at all time. Macroeconomics condition is ever-changing and no one has the ability to predict the future accurately. However, a good stock is one that will continue to prosper through the ebb and flow of the business cycle. This is not exactly what we called defensive stock, but these are companies that are able to survive a hit or two and yet able to grow fast during period of growth. The following are the characteristics that I always look for in my target:

Business
Recurring and Predictable Income
Favourable Long-term Business Economics
Sustainable Competitive Advantage

Accounting 
High ROA and ROE
Clean and Strong Balance Sheet
High FCF/Net Profit Yield
Dividend Yield

Recurring and Predictable Income - Recurring income exists in many forms, with some being more explicit than others. ......