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4. Analyzing Company Fundamentals > Insisting on Quality

Insisting on Quality

When you invest in companies for the long haul, buying quality is critical. Sure, you might make some fast money buying a dicey company on a hot streak, but it’s just as easy to lose most if not all of your original investment if the company runs into trouble. Quality growth companies make for a more relaxed approach to investing—not only can you assume less risk to earn your return, but you spend less time studying stocks because their past performance can be a good indication of what you can expect in the future.

Just as with consumer products, the quality of a company isn’t just about numbers. Quality can be the number of skilled executives on the management team, the steady introduction of successful new products, revamping older products for new uses, dealing with problems that arise, and making the most of opportunities.


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