Quality for the Long Term and Today

Executive Summary

There are many ways to define quality companies. GMO’s focus in quality investing for 40+ years has been on companies that have a consistent and enduring ability to deliver high returns on their investments. This requires a business with continued growth and relevance, tight control to replicate assets, and strict capital discipline on management’s part. These companies often identify themselves by delivering a track record of high profitability, stable profitability, and a strong balance sheet.

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Disclaimer: The views expressed are the views of Tom Hancock through the period ending November 1, 2023, and are subject to change at any time based on market and other conditions. This is not an offer or solicitation for the purchase or sale of any security and should not be construed as such. References to specific securities and issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities.
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