Over the last 15 years, quality investing has crushed value investing.
• The MSCI's quality index has an average outperformance of 2.71%, compared to -2.32% for their value index.
• Quality has outperformed in 11/15 years, while value only managed 5/1
• Quality delivered the lowest volatility (SD=4.36%).
Critics may argue that 15 years is a short time frame, but the consistency and lower volatility speaks for itself.
Maybe, but most of the performance is free cash flow growth, which may continue into the future.
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The MSCI World Quality index has outperformed the MSCI World index 10 out of the last 14 years.
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