This article discusses the importance of quality investing and how it can beat the market. Quality companies have the ability to compound shareholders' wealth over time and are often considered bargains in the long term. The article explores the reasons why quality investing works and the traps investors can fall into. It highlights the importance of measuring returns on investment, consistency, high margins, and asset turnover when identifying quality companies. The article also mentions a stock screen that has outperformed the UK market by 388% over a decade. However, it cautions against overpaying for quality companies and investing in companies with the wrong kind of growth. The article concludes by advising investors to seek advice from a qualified investment adviser before making any investment decisions.
Source: Interactive Investor
Link: [How to beat the market: how, why and when quality investing works](https://www.ii.co.uk/analysis-commentary/how-beat-market-how-why-and-when-quality-investing-works-ii529952)
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