Quality of business x Quality of management
• Stable business, preferably consumer facing
• Huge business opportunity
• Sustainable competitive advantage
• Competent management team
• Healthy financials & ratios
Longevity – of both Q & G
• Long-term relevance of business
• Extending competitive advantage period
• Sustenance of growth momentum
Growth in Earnings
• Volume growth
• Price growth
• Mix change
• Operating leverage
• Financial leverage
Price
• Reasonable valuation, relative to quality & growth prospects
• High margin of safety