The Enduring Case for Quality Stocks


Key Takeaways

  • Coronavirus fears, the Saudi-Russia oil price war and their economic shockwaves have halted the U.S. economic expansion that began more than a decade ago.
  • For investors concerned about market risk, we believe high-quality, or blue-chip stocks, offer a good way to stay invested in stocks over the long term.
  • High-quality stocks have historically delivered better performance with less risk than low quality stocks.
  • By choosing quality stocks, investors may have the opportunity to participate in much of the market’s upside, while reducing downside risk.

What Is a Quality Stock?

While there’s no universally accepted definition of quality, we consider various company characteristics when evaluating quality.


Strong management teams


Leading market positions and strong brands


Business models that provide steady streams of income


High standards for environmental, social impact and corporate governance issues


Low levels of debt that can help them weather a market downturn or acquire other businesses


To read more, download the full PDF below.

The Enduring Case for Quality Stocks

Investment return and principal value of security investments will fluctuate. The value at the time of redemption may be more or less than the original cost. Past performance is no guarantee of future results.

This material has been prepared for educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice.

American Century Investments is not responsible for and does not endorse any comments, content, advertising, products, advice, opinions, recommendations or other materials on or available directly or via hyperlinks from Facebook, Twitter or any third-party website. Facebook, Twitter and LinkedIn are registered trademarks of their respective owners.

The opinions expressed are those of American Century Investments (or the portfolio manager) and are no guarantee of the future performance of any American Century Investments' portfolio. This material has been prepared for educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice.