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.

BREAKING DOWN '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.

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