A dominant or growing market share in a growing market. A firm that is increasing its share of a growing market has the best of both worlds. A proven record as an acquirer. When an industry or market downturn occurs, it's good to own companies that can take advantage of low prices to expand operations through inexpensive acquisitions. A strong balance sheet .
Strong finances give a company staying power to weather difficult economic cycles.
Products or services that do not become obsolete. Many investors are unsuccessful because they invest in firms with products that eventually are surpassed by their competitors'. Successful international operations. A proven ability to expand internationally reduces the risk of being tied too closely to the U.S. economic cycle. The savvy use of technology in any business from a food company to an investment bank can help reduce costs and increase sales.