When a high-quality business takes a hit to its share price, it can be either cyclical or structural. Understanding and identifying which is which, is key to successful investing, explains James Abela, Portfolio Manager of the Fidelity Future Leaders Fund. There are three key indicators of a structural change that they look out for: 1) Increased competition; 2) Management complacency; or 3) Higher capital spending. “If one of those three things are prevalent, you really need to assess whether the change is more permanent that you’d like to believe.” Ideally, the lower share price will purely be due to lower expectations, which can offer a great opportunity to enter a position. In this video, he identifies a high-quality ASX-listed stock that meets his criteria.