For Magellan's Vihari Ross, investing in a stock is akin to finding an incredible athlete and placing them into an elite sports team. A tremendous amount of research and groundwork goes into identifying a talented candidate and then putting them in the correct position within their portfolio. So, what does Vihari consider when reviewing a stock idea? Vihari says it boils down into two key criteria:
- Quality, which spans a range of factors including the company’s economic moat, the strength of its brand, ability to reinvest capital and the quality of management, and
- Value, is the business trading at a reasonable price when considering future growth prospects?
Watch or read the transcript to get a glimpse of how Vihari approaches stock selection.
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Magellan believes that successful investing is about finding, and owning for the long term, companies that can generate excess returns for years to come. To learn more click the contact button below or visit their website.