‘Management quality, If there is any doubt then you need to discard the business’
I do not completely agree to this point, because the economics of business matters the most. Have a look at the businesses such as coca cola or Washington post, Burlington northern Santa Fe, ITC, Mou-tai, All liquors/tobacco/cigarettes businesses they can be run by a fool (which we term as great quality of business which needs no management competency), and in the past they did run by fools (great abilities to misallocate capital).
But in the end, their fantastic economics compensate for the management.
But, if the business needs a competent management despite having good economics like HDFC, Kotak, Amazon, Google etc. then yes, a deteriorating management is the call to get out of the stock.
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