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MI349: The Quality Quest: Building Wealth, One Quality Investment At A Time w/ Compounding Quality

The Intrinsic Value Podcast - The Investor’s Podcast Network

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Distinguishing Quality Investors from Growth Investors Based on Company History

Quality investors focus on companies with a proven track record, aiming to identify businesses that have a history of success and are likely to continue this success in the future. They prioritize companies with a long history of profitability and a sustainable competitive advantage. In contrast, growth investors seek early-stage winners with the potential for rapid growth, often looking at promising technology companies or IPOs. Quality investors prefer businesses with at least five to ten years of successful track record, with a return on invested capital higher than industry rivals, indicating uniqueness and strong capital allocation skills. Investing in IPOs is generally avoided by quality investors, as academic studies show that most IPOs do not perform well in the long run, with only a very small percentage of companies achieving significant success post-IPO.

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