Features | Education | 6 Mins Read | by
Quality investing is in vogue. But quality can be in the eye of the beholder. It is helpful to use a system to assess both quality and growth.
My article in July's issue of Master Investor seeks to do just that.
The first criteria is that a business needs to be durable. It is no use investing in something that is unlikely to stand the test of time.
The durability of a business is open to debate. It depends on whether risk factors come to the fore, with the tobacco sector a case in point.
We can then look towards financial criteria. To compound value for investors a business needs to generate high returns, sustain high returns and realize high-return growth.