Overall, 21 constituent companies of the FTSE All Share Index score 9/9 on our true quality tests screen. Housebuilders are well represented once again but, as we have repeatedly stated, investors need to consider the special circumstances that has seen this sector do so well in recent years.
The sell-off in October might be a chance to buy into some of the traditionally quality companies that score well on our screen. For example, Spirax-Sarco Engineering (SPX) is considerably below its high at the start of October. Although, given the premium investors have paid for quality in recent years it may still not be cheap.
On Aim, 14 companies pass all nine tests. It is unsurprising to see companies like Bioventix (BVXP) score well on quality metrics but like their counterparts on the main market, the question with all these companies is; to what extent is quality priced in?
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