Quantity is not everything: GameStop frenzy reinforces need for quality in US stocks

More checks and research needed for better stock picking

The GameStop drama that has rattled US stocks reflects the growing power of individual investors to shape market events. But there are lessons for traditional, long-term investors, too.

When markets ignore fundamentals, redoubling a focus on quality is the best way to produce consistent returns while reducing volatility. Since late January, investors have been captivated by an unfolding showdown in the US stock market that's been widely reported in the mainstream media. Silver squeeze is 'not the same as GameStop' - managers GameStop, a physical retailer of video games and hardware, was a struggling business. With the video game industry transitioning away from physical disks, GameStop's stock has traded at about $5 per share over the past 18 months. Hedge fund...