Quality Companies Vs Cheap Stocks

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Contra
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Quality Companies Vs Cheap Stocks

Postby Contra » Mon Aug 06, 2018 1:11 pm

https://intrinsicinvesting.com/2016/03/ ... ap-stocks/

Quoted following from the wikipedia.org

Quality investing is an investment strategy based on a set of clearly defined fundamental criteria that seeks to identify companies with outstanding quality characteristics. The quality assessment is made based on soft (e.g. management credibility) and hard criteria (e.g. balance sheet stability). Quality investing supports best overall rather than best-in-class approach.Quality investing is an investment style that can be viewed independent of value investing and growth Investing.[9] A quality portfolio may therefore also contain stocks with Growth and Value attributes.


Characteristics of Quality Stocks

Good Management
Strong Balance Sheet
Earnings Stability
Operating Efficiency
Enterprise Life Cycle
Economic Moat
Dividend Paying Stock.

Some analysts have selected to use the The Piotroski F-Score for a quality stock screen. It concentrates on profitability, capital structure, and operating efficiency in evaluating the quality of a company.
Company, stock market, politics and the economy are four different things.

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