A listed investment company's investment manager recently said that during times like these, qualitative factors of the investment analysis process become much more important.
Principle Activity – How does the business make money in all environments?
Income – Companies that offer a sustainable and growing dividend stream are usually the ones that are better quality. This only happens if you have a strong balance sheet.
Balance sheet Strength - Always be wary of companies with over-geared balance sheets. The companies with weak balance sheets have to come back to market and when they do they dilute existing shareholders. It is very unattractive.
Couldn't help but be reminded of EN1 when listening to the last point.
