Part 2/9:

David Quo, with three decades of experience, advocates for income investing, emphasizing its practicality and reliance on tangible financial metrics. His core principle revolves around the company's capacity to generate cash—not just for reinvestment or growth but to reward shareholders directly.

He distinguishes income investing from growth investing by emphasizing reality over promises. Growth companies often promise future profits that may or may not materialize, relying heavily on share price appreciation with less focus on actual cash flow or dividend payments. Conversely, income investing centers on companies that are currently profitable, cash-flow positive, and possess the pricing power to adjust prices when necessary—ensuring consistent profitability over time.