What are the points we should look at for quality shares
Moats, growth potential, low debt, pricing power and momentum.
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Jenks
5 comments
rmillaree
decent margins
positive cashflow
no debt (or little debt)
positive trend in earnings
reliable earnings history (exception for covid perhaps)
Note none of the above actually make a company "quality" - but it will probably help you stay way from the dross
Note perhaps busines you understand too and see that they are decent outfit
eg next - greggs - jet2 whitbread (premier inns) - wetherspoons - spring to mind as pretty simple companies doing decent job - sometimes something obviously simple done decently that works is enough. some companies doinga good job may have horrible financials though.
you also want confidence business is likely to not be obsolete in 5 years time - for above companies cant think any of them will have marketplace that will dry up over the next 5 years. ok there may be less pubs so spoons could have smaller overall market - but i suspect they will do just fine even when your smaller wet pub is closing due to les drinking going on on day to day basis.
Jenks
Thank you all for taking the time reply much appreciated. I will check out each of your responses.
