Do we view Brambles as a high quality company?
Brambles is one of the companies that you’d think would tick quite a few of the quality criteria that we at Montgomery evaluate any potential investment on. Let’s have a look and see!
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Brian
:
Andreas, wonderful article on Quality Assessment. Will the team consider sharing an article on how value is assessed? Or has this already been done in the past.
Thanks very much
Brian
Joe
:
Great article Andreas.
Qu:
1. Do the criteria have equal weighting in your model?
2. if you were to single out a single criterion that is most important, of the 11 listed, and that correlates the best with share price what would that be?
Regards,
Joe
Andreas Lundberg
:
Thanks Joe,
Yes every criteria has an equal weighting in our model. We have not seen the need to complicate it further by having different weightings.
It is very hard to single out one as the most important as they are somewhat overlapping (i.e. if you got a very strong position in an industry that has few competitors you are likely to have good pricing power etc.) but if I had to pick one, I would probably pick either pricing power as that is probably the strongest indication of quality or growth potential as growth creates opportunity for value creation.