High-quality stocks are stocks that are believed to have a lower risk of financial distress or bankruptcy and are associated with companies that are considered to have strong financial fundamentals. These stocks are often considered to be stable, reliable investments that provide consistent returns over time.

The definition of high-quality stocks can vary depending on the investor's criteria, but some common characteristics include a history of consistent earnings growth, a strong balance sheet, low levels of debt, and a competitive advantage within their industry.

Investors typically focus on high-quality stocks as a way to mitigate risk in their portfolios and provide a stable foundation for long-term growth. By investing in companies with strong financial fundamentals, investors can minimize the risk of losing money in the stock market and increase the likelihood of achieving their investment goals.

High-quality stocks are shares of companies known for their consistent performance, financial stability, and strong market position. These companies typically have a track record of steady earnings growth, high return on equity (ROE), and low debt levels. They often operate in industries with strong competitive advantages, allowing them to maintain profitability even during economic downturns.

High-quality stocks also tend to have strong cash flows, enabling them to pay dividends regularly. They are defined by their ability to generate consistent returns for investors over time, with lower risk compared to more speculative stocks. Investors look for characteristics like solid management, a durable business model, and the ability to adapt to changing market conditions when identifying high-quality stocks for long-term investment.