Quality First, Price Second
One of the biggest mistakes investors make is believing that a cheap company is automatically a good investment.
It isn’t.
A low share price may reflect real problems: weak management, declining demand or a business with little competitive advantage.
On the other hand, exceptional companies rarely look cheap.
Businesses such as Visa, ASML, Air Liquide or Schneider Electric have spent decades building strong positions in their industries. They generate cash, invest for the future and continue creating value year after year.
That doesn’t mean valuation doesn’t matter.
It does.
Price always matters.
But quality comes first.
I’d rather wait for the right opportunity to buy an outstanding business than rush into an average one simply because it appears inexpensive.
Over the long term, the quality of the business is what drives returns.
Not the illusion of a bargain.