We recently added two new fundamental screens to our trading ideas page. Both screens are designed to identify pure quality stocks.
These are stocks of companies with an excellent reputation, a strong balance sheet and stable growth. These are just some of the criteria that such companies should meet. In this article, you can read more about the specific quantitative and qualitative criteria for retaining the best quality stocks.
Quality investors focus first on quality and only secondarily on the price of the stock. Quality costs money, which is why a quality investor, unlike a typical value investor, is willing to pay a premium for the very best companies.
The first Caviar Cruise screen is the basic version that provides an initial broad selection.
A second screen is also available where the basic filters are extended with filters that additionally focus on profit margin growth, operating margin growth and ROIC growth.