ANALYSIS: It is important to distinguish between high-quality and low-quality companies.
Quantitative investors often seek to distinguish between high-quality and low-quality companies.
Jack CrowleyTue, 25 Feb 2025
When picking stocks solely on quantitative criteria (such as valuation or growth rates), there is a danger that strong returns fail to materialise. For example, even if a company trades on a cheap multiple of earnings, profits may have been overstated (or may not be sustained); these earnings may