At Itus, earnings growth & margin expansion are non-negotiable during our portfolio construction. We like to buy companies which have the ability to maintain its gross margins across cycles and demonstrating pricing power. Such businesses in-turn have healthy return on capital employed (>1.5x cost of capital across cycles), which is very crucial for us as investors in the companies we own. Finally, it’s important that valuations must be looked at relative context of growth, which is the main driver of stock returns.