Imagine you are planning to buy a new car. There are two models on the market, both in a similar price range, but one is from a reputable brand with a long history of quality and reliability, while the other comes from a lesser-known manufacturer. While both cars are comparable in price, you'll probably opt for the one from the better-known brand because you expect its quality, workmanship and longevity to deliver more value.

Similar to choosing a car, when you invest, you may decide between different stocks that have similar prices but differ in quality and financial metrics. Quality-focused investing is not just about looking for low prices, but more importantly about evaluating how good and stable the companies you invest in are. This approach involves analysing company fundamentals such as financial health, earnings stability and capital efficiency to ensure that your investments will deliver higher and more stable returns over the long term.

Investing in quality stocks is becoming…