For Magellan Asset Management’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: 

  1. 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 
  2. 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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