As a follow to our previous article, we will delve deeper into discretionary equity investing. Remember that discretionary equity investing can be challenging task as the field is highly competitive and there are a lot of brains chasing the same few investments in the market. It largely boils down to what investors perceive as the quality of a company: a) Growth It's easy to just reduce growth to one metric like compound annual growth rate of revenue, but I can hardly see it work when I back-test portfolios which use this criteria. Good sustainable growth can result in bigger free cash flows, imagine a store that found a way to increase sales without increasing their operational expenses. Growth can also be bad if it comes from manipulating accounting figures. imagine a company growing by acquiring rivals at high prices. Somehow a growth investor needs to take all these considerations into ......