Best Of Breed

AAA

DEFINITION of 'Best Of Breed'

A stock that represents the most optimal investment choice for a specific sector or industry due to its high quality compared to its competitors. This slang is derived from dog shows, where the highest quality dog for each breed wins an award and is given the "best of breed" title.

INVESTOPEDIA EXPLAINS 'Best Of Breed'

Because most investors are faced with the problem of limited capital for investment purposes, it is important that their capital only be allocated to the best investments. Therefore, it is important to identify "best of breed" stocks.

Some criteria for determining whether a stock is the "best of breed" is by looking at its revenue growth, market share and corporate governance compared to its competition.

RELATED TERMS
  1. Ahn Cheol-Soo

    The founder and former CEO of Korean antivirus software company ...
  2. Mogul

    An individual who has been very successful in business and has ...
  3. Industry

    A classification that refers to a group of companies that are ...
  4. Market

    1. A medium that allows buyers and sellers of a specific good ...
  5. Business

    1. An organization or enterprising entity engaged in commercial, ...
  6. Sector

    1. An area of the economy in which businesses share the same ...
Related Articles
  1. Investing Basics

    Industry Handbook

  2. Investing

    How To Analyze Restaurant Stocks

  3. Fundamental Analysis

    Sector Rotation: The Essentials

  4. Investing

    What is the difference between an industry ...

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center