Every investor's motto should be the following:
"I buy great stocks at even better prices."
Here are five attributes we look for when buying a great company at an even better price:
1) Strong Free Cash Flow Generation
2) Top line growth from 5% to 15%+
3) High margins as a result of pricing power created by economic moat. Look to margins to determine market competition.
4) Intangible strengths, such as effective management or prodigious lobbying power in Washington
5) Attractive entry point as a result of speculative rumors, temporary headwinds, or overall market weakness
While these are great attributes for which we should all search, they aren't the only ways to find great stocks that will generate market beating returns over the short and long term.