Most investors would agree on the fact that investing in high quality stocks can be a great strategy to maximize returns and keep risks under control over the long term. However, implementing such strategy is easier said than done. Like beauty, quality is in eye of the beholder to some degree, and the concept of business quality includes many variables which are hard to measure or quantify.
That notwithstanding, quality can also be analyzed in numerical ways, and business profitability is one of the most important indicators of underlying quality. There is a clear and