STRATEGIES / QUALITY
LENS 03 · QUALITY · 2 STRATEGIES
Durable returns on capital
Two depths of the same question — does this business earn high returns on capital, and can it keep doing so? — one quantitative, one read fifteen points deep in the filings.
Quality Compounder
IN THE TRADITION OF MODERN QUALITY-COMPOUNDING RESEARCH
Businesses that earn persistently high returns on invested capital and can reinvest at those rates. The compounding case rests on durability evidence, not on a single good year.
ROIC persistence across years, gross-margin durability, reinvestment capacity, and balance-sheet strength.
The moat evidence behind the returns, reinvestment runway in the business description, and capital-allocation discipline in MD&A.
15-Point Qualitative
IN THE TRADITION OF PHILIP FISHER'S FIFTEEN-POINT QUALITATIVE METHOD
Fifteen qualitative dimensions — product runway, sales organization, R&D productivity, management depth and candor — each scored from what the filings actually disclose, with unknowns kept visible.
A quality pre-screen: scale, profitability, R&D presence, and growth consistent with a durable franchise.
All fifteen dimensions read from the filings, each scored with evidence or marked unknown — candor about problems counts.
Every strategy on this page can be forked and modified in the Strategy Lab. Strategy titles describe the method; practitioner names appear only as attribution — no methodology here is endorsed by or affiliated with the practitioners named.
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