FNArena’s Weekly Insights – November 20 2023
In this week’s Weekly Insights:
-Quality In Stocks; What Is It Good For?
-Conviction Calls & Best Ideas
-FNArena Talks
By Rudi Filapek-Vandyck, Editor
Quality In Stocks; What Is It Good For?
Institutional investors and grey-haired market commentators often refer to it; Quality. But what is it exactly and does it really matter in a low volume share market that hasn’t made any sustainable progress in 2.5 years?
The simplest definition is to seek out those companies that have superior qualities over the majority that can be measured through financial metrics such as gross margins (and the stability thereof), high return on equity and on capital invested, as well as managerial characteristics such as market-leading products and services, delivering on promises and execution on strategy and plans.
Some experts might take this one step further and also include something intangible as ‘corporate culture’.
