‘Quality’ companies are well built beyond their books

It may not be the most exciting factor, but recent studies show it’s proven to perform

Yan Barcelo 12 December, 2019 | 1:15AM

Clouds and beam of light

Countless portfolio managers have practiced quality as an investment factor for a long time now, but only recently have the numbers validated the increasingly popular approach. It may be time for investors to jump on the bandwagon.

Sometimes, it takes a while for theory to catch up with practice. For example, it has been many decades that researchers have defined investment factors like value, momentum or low volatility, factors with which portfolio managers had been reaping market gains for many decades more.

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About Author

Yan Barcelo  is a veteran financial and economic journalist with more than 30 years of experience, writing for many publications in Toronto and in Montreal, including CPA MagazineLes Affaires and Commerce.