Style of Picks

Quality strategy

Return-on-Capital-Employed Screen

Screen the market for businesses that turn capital into profit at a high, sustained rate — with little debt doing the heavy lifting.

3–5+ years; rebalance periodicallyBeginner

Quality-factor investing — the Buffett/Munger emphasis on return on capital, formalized in academic “quality”/profitability factor research (Robert Novy-Marx) and MSCI-style Quality Index methodologies