“It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.” – Warren Buffett

We all know that finding a wonderful company to invest in isn’t always that easy to do. There are thousands and thousands of companies out there in the stock markets around the world (776 in our SGX alone), so how do we tell which companies are quality and which aren’t.

A high-quality company is one that will continue to be more successful and profitable in the long term and see a rise in its share price over the years (think Apple!). A low-quality company, on the other hand, will see its results and share price sink like the Titanic; taking your hard-earned money along to the. Worse still, some companies are so bad, they’re the facades of manipulative pump-and-dump schemes, swindling speculators and amateur ...