Stocks with good value have the tendency to outperform bad ones in a long run.
How do we define good value?
There are a lot of ways to define good.
We define it through “comparing financial reports”. Without knowing what are bad, we cannot find those are good.
There are nearly 6,000 stocks in NYSE and Nasdaq. A comprehensive comparison is essential while most of time people only compare a small fraction of of them.
The 3 pillars to quality stocks are:
1. Marginal Safety
2. Franchise Power
3. Financial Strength