-When markets feel uncertain, how do you personally define a “quality stock,” and what traits matter most right now?

Quality is a vague metric, but typically includes any fundamental factor that isn't defined as value or growth. I believe quality also includes many traits that can't be quantified. For example, I look for a management team with an even temperament. Industry dynamics are also important in finding quality companies. However, industry-level research is nuanced and time-intensive.

-Which financial fundamentals should investors prioritize when the economy feels shaky—cash flow, debt levels, dividends, or something else?

Companies with high margins can withstand turmoil much better than low margin, high turnover businesses. Overall stable businesses tend to fare better. Consistent dividends are a sign that a company believes it has reached a point of stability.

-Are there specific sectors that tend to hold up better during periods of economic stress, and why?

Utilities are notoriously stable, and mostly tend to be low-risk, low-growth, and high-dividend stocks. Consumer stocks are often divided into two categories, with one correlating with the business cycle, and the other remaining stable. There are items people always need, like food, toiletries, and household products. Stocks providing these are categorized as "consumer staples" or "consumer defensive" stocks.

-How important are dividends and dividend growth when investors are worried about volatility or potential recessions?

(See above about dividend indicating stability, and utilities being a stable high-dividend sector)

-What role does pricing power play in determining whether a stock can perform well during inflationary or uncertain periods?

(See above about high-margin business vs low-margin, high volume ones)

-How can investors distinguish between a genuinely high-quality company and a stock that simply looks “safe” because it’s popular or well-known?

Analyzing individual stocks is an intricate practice, and I see very few modern investors get it right. Finding a quality stock involves looking at the full set of financial statements. You can't just devise a single metric to apply across the whole market. Everyone wants some magic bullet to simplify their analysis, but every industry behaves differently. Also, I rarely see quality stocks being promoted on media channels like CNBC. I've found some of the best investments in extremely boring industries, which don't make for good television.

-Do quality stocks still make sense for younger investors with longer time horizons, or are they primarily a defensive play for older investors?

I believe that true quality stocks outperform the market over the long-term. Market cycles can be extremely long, sometimes lasting more than a decade. Impatient investors often chase momentum stocks making new highs, but tend to get hurt more in a market downturn. The best quality stocks will outperform across multiple cycles. Therefore, they should be even better investments for younger investors.

-How should investors think about valuation when buying quality stocks—can a great company still be a bad investment at the wrong price?

This is more of a question about valuation and growth. Quality alone doesn't make a good investment. Anything can become overvalued. Rather, quality amplifies the potential for an investment made based on growth, valuation, or both.

-For investors feeling anxious, how can focusing on quality stocks help reduce emotional decision-making during market swings?

True quality investing involve deep research that simply can't be based on vibes alone. The process alone can shift one's mindset from emotional to rational.

-What’s one common mistake investors make when trying to “play it safe” in uncertain economic environments?

Passive investing is widely seen as safe over the longterm. However, today few investors have experienced a true "lost decade" for their portfolios. While passive investing might form the core of an equity portfolio, we view active investing as a smart diversification. Strategy diversification can help reduce frequently overlooked risks, like market concentration risk.