Quality Investing

Owning the Best Companies for the Long Term

Framework

by

Torkell T. Eide, Lawrence A. Cunningham, and Patrick Hargreaves

2016

2016

A framework for identifying truly high-quality companies by breaking down the traits that matter most, how to recognize them, and how to evaluate their durability. It also shows which characteristics to avoid—like cyclical boosts or growth-at-any-price stories. At their core, quality companies share three pillars: predictable cash flow, abundant reinvestment opportunities, and sustainably high returns on invested capital—the engines of long-term compounding.

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Jermaine's Notes

December 2025

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