No. of Recommendations: 11
The new academic contribution is not that quality is important, but that the simple ratio of gross income to total assets appears to capture quality quite well.

Just a first look using SIP (Gross income Y1/ Current assets Y1) from 6/2/200 to present gives:

CAGR per bin [-11.5 -1.9 1.9 2.6 5.3 5.3 7.4 7.1 7.7 6.9]
Av STDev of gains [ 15.6 13.5 12.7 12.4 12.1 11.8 11.7 11.6 11.6 11. ]

Does nicely just by itself.
Potentially a very nice addition to our toolbox.

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