The advantages of focusing on quality cannot be understated. By investing in quality you significantly reduce the probability of permanent loss of capital.
And since the business is strong, the long term returns are far superior to average quality businesses. Thus investing in quality is the perfect recipe to generate superior risk adjusted returns. But quality has become a generic term today when it comes to investing. No investor would tell you that they don’t invest in quality stocks. But the definition of quality is different for everyone and one might even say that quality is often in the eye of the beholder.
Rather than debating on the various definitions of quality we would like to discuss how we look at quality in Multi-Act.