Monday, November 28, 2011


The Quality Conundrum

Interesting post over at the Value Restoration Project:
The way we see it, we are likely embarking on an era where high quality stocks will significantly outperform low quality stocks as we work our way through what will be the third, and perhaps final, painful market decline of the secular bear market and continue that outperformance as the seedlings of the new secular bull market which will eventually drive the broad market indexes higher in subsequent years. The attractive absolute valuations of many high quality companies which trade at single digit P/E and cash flow multiples, around tangible book value, and with respectable 3-6% dividend yields will be the foundation for those eventual gains.

No comments: