Quality Growth
A style of investing focused on companies that combine consistent growth potential with high-quality business fundamentals. Quality growth companies typically exhibit high returns on capital, strong profit margins, and capital efficiency. They often possess a durable competitive advantage—or moat—that protects their market position and financial performance from competitors.
These businesses generate predictable, robust cash flows and have clear opportunities for sustained growth. Due to their strong fundamentals and reliable performance, they frequently trade at valuation premiums, reflecting market expectations for continued outperformance. Identifying quality growth opportunities often involves balancing business quality with reasonable valuation, which can be a key challenge for investors.