Quality investing

Quality investing means investing in companies that are good at what they do and have a strong, stable business model. It's like choosing to buy a toy from a store that makes high-quality toys that last a long time, instead of buying a toy from a store that makes cheap, poorly-made toys that break easily.

When we invest in quality companies, we look for things like:

- Strong financials: Good companies have lots of money coming in and not too much going out, so they can keep growing and making good products or services for customers.
- A competitive advantage: A good company has something that makes it better than other companies in its field, like a unique product or a special way of doing things.
- Consistent growth: A good company is always looking for ways to improve and grow, and it's able to keep growing even during tough times.

Investing in quality companies can be a good strategy because they tend to be more stable than other companies, so their share prices may not go up and down as much. This means that although the returns from quality investing may not be as high as investing in more risky companies, it may be a safer way to grow your investments over time.