Investing Strategy Focuses on High-Quality Companies

The podcast episode discusses the host's investing strategy, which emphasizes buying high-quality companies based on their long-term durable earnings and cash flow growth. Unlike many investors who focus on short-term multiples, the host prioritizes companies with solid business models that can consistently grow earnings above the market. He gives examples of companies like S&P Global, MasterCard, and Intuit that he buys and holds despite trading at higher multiples. The host believes that over time, a strategy centered on quality companies will outperform, as earnings per share growth is a primary driver of stock returns.