Quality at Reasonable Price, is investing in well-managed businesses that exhibit superior returns, generate strong cash flow and are available at attractive valuations.
QARP investors, think in terms of economic value, which a business can create by delivering growth with superior returns.
Quality at Reasonable Price ensures you invest in quality companies. Buying quality stocks at a reasonable price reduces the chances and extent of a fall in your net worth and thereby dramatically increase your chances of staying invested. Wealth is the natural outcome of staying invested and compounding growth of your investment.
QARP can be based on the careful consideration of both investment risk (quality) and expected returns (price). This produce a portfolio that is style unaware and can include both value and growth, depending on the risk / return.
Generally, investment is done in high quality companies, particularly those with suitable dividends which are available at reasonable price. This leads to improve long-term investor returns, while also providing downside protection in adverse markets.