Investing in global equities is a quest to find the companies that have made, or can make, the leap from good to great. The world is full of good companies. Most of these businesses, especially in consumer services, possess the ingredients an investor seeks in any stock – competent management, ability to innovate, respect for regulation and high service standards. But few of them will ever be great. The answer is that great companies have something unique, something different that sets them apart from their competition and allows them to generate sustainable excess returns for a long time. Stock investors can find these companies if they ask the right questions. Finding companies that meet the criteria, though, is difficult because great companies are rare. To be sure, there are no set formulas that make a company great rather than just good. Greatness can fade. In this article, you’ll find five questions investors can ask to help identify great companies. (VIEW LINK)
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