Investing in high-quality stocks can be a great strategy to obtain superior returns over the long term. Few investors would disagree with that statement. However, implementation is the key part. Quality can be defined in multiple ways, and finding high-quality stocks is much easier said than done.
Nevertheless, business quality can also be measured through financial indicators and profitability ratios, and superior profitability over the long term is many times a sign of superior fundamental quality too.
Success attracts competitive pressure in the business world. When a company is doing well in a particular market,