Quality Stocks

[robertbanking]

Hello everyone, hope your weekend has started off positive and you are all doing well.

I have been researching lots of ways to pick quality stocks, some evaluations look at the fundamentals of the stock, including PE ratios, earnings. Some evaluations look at the management team and information about its customers. Of course all this is important to look at together, but does anyone kindly have any thoughts on what are the most important points to look at to determine a quality share or investment please? Further what you kindly find the most important in selecting a medium to long term investment please, this would be very helpful?

Thank you very much for any advice you can give. I hope you have the best weekend ever and stay positive. Thanks again for your support.

 

[tech/a]

I’m a technical trader
long term super investment and trading Rightly or wrongly I let BT do the work
I use their Margin lending list as my universes of stocks

Margin lending acceptable securities | BT

Margin lending acceptable securities and LVR for each investment in your loan portfolio.

www.bt.com.au

You can further filter by the % allowed to be traded on margin

Alone this is helpful but not ( for me not definitive )
From here I use a number of technical setups using similar triggers to those that Peter 2 uses and he has posted much on this ) along with my own VSA analysis.

By FAR the most important aspect is TRADE MANAGEMENT
It may take a few goes to get on a trade as in short and long trading I’m aggressive in MANAGING RISK. once at Break even I let the trade run more than my short term trades.

I know this isn’t exactly what you are after but maybe helpful to you or others.

 

[investtrader]

Hello everyone, hope your weekend has started off positive and you are all doing well.

I have been researching lots of ways to pick quality stocks, some evaluations look at the fundamentals of the stock, including PE ratios, earnings. Some evaluations look at the management team and information about its customers. Of course all this is important to look at together, but does anyone kindly have any thoughts on what are the most important points to look at to determine a quality share or investment please? Further what you kindly find the most important in selecting a medium to long term investment please, this would be very helpful?

Thank you very much for any advice you can give. I hope you have the best weekend ever and stay positive. Thanks again for your support.

An excellent stock screener is Stockopedia. You can screen for quality or momentum or value etc. They have some proprietary algorithms that outperform the market.

 

[divs4ever]

You can further filter by the % allowed to be traded on margin

yes that is also used as a smaller factor in my decisions ( in close decisions )
but bear in mind those lending values are NOT set in stone , a business going badly over a medium term can receive a lowering lending value ( and that lowering or rising value might be instructive to some also )

but also remember many CDOs in 2007 were still AAA rated by the major credit agencies ( ALL novices should watch ' The Big Short ' to get an idea of the financial system and investment system that is the backbone of the share-market )

Hello everyone, hope your weekend has started off positive and you are all doing well.

I have been researching lots of ways to pick quality stocks, some evaluations look at the fundamentals of the stock, including PE ratios, earnings. Some evaluations look at the management team and information about its customers. Of course all this is important to look at together, but does anyone kindly have any thoughts on what are the most important points to look at to determine a quality share or investment please? Further what you kindly find the most important in selecting a medium to long term investment please, this would be very helpful?

Thank you very much for any advice you can give. I hope you have the best weekend ever and stay positive. Thanks again for your support.

i am very debt adverse ( extremely watchful ) so i watch D/E ( debt/equity ) i also watch NTA ( Net Tangible Assets ) ( what the business is worth if sold in smaller parts ) think of your share investment as a car ( or guitar ) you are buying second hand because unless you bought at the IPO it essentially is , ) your share is much more than a shiny exterior , there is the engine ( revenue generation ) a windscreen ( a look into the future ) a fuel tank ,( cash reserves/credit facility )

Warren Buffet has some useful ideas on valuing a business ( but , sure , adapt those ideas for yourself )

' quality ' very much is a reflection of time and business management ( watch out for those business that have 'board refresh policies ' , it hints a lack of long-term direction )

ALSO i am very much in favour of directors 'with skin in the game ' ( especially founders/co-founders ) , and yes i know others think that can be a detriment

 

[So_Cynical]

Quality stocks are what? very hard to define, i own small and micro cap stocks that i consider quality stocks.

 

[investtrader]

Quality stocks are what? very hard to define, i own small and micro cap stocks that i consider quality stocks.

As I mentioned, Stockopedia ranks stocks for quality. That means given a relative score. The factors used are here - https://app.stockopedia.com/learn/stockranks-&-ratings/the-quality-rank-463098 and are taken from the work of others.
(hope the link is not behind a paywall)

 

[Dona Ferentes]

and there's an ETF just for you. Or not. 300 companies that meet certain criteria.

VanEck MSCI International Quality ETF (QUAL)​

 

[So_Cynical]

Another new "quality" ETF i stumbled across last night.

The BetaShares Australian Quality ETF (AQLT) is coming soon to the ASX - 40 quality ASX listed stocks selected for

• High return on equity
• Low leverage
• Relative earnings stability

BetaShares Australian Quality ETF (AQLT) is now available on the ASX

The BetaShares Australian Quality ETF (AQLT) is now available. AQLT offers investors access to a diversified portfolio of 40 ‘quality’ listed companies including CSL, Macquarie Group, Woolworths Group and Wesfarmers, selected based on: High return on equity Low leverage Relative earnings...

www.betashares.com.au