Quality businesses share a few characteristics. They usually have roomy profit margins, generate plenty of cash and achieve good growth relative to the amount they invest. There is also a less tangible trait that many of these companies have in common – they are a little dull and boring.

Data giant Relx and industrial supplier Diploma ($DPLM (-1,08%)) don’t set my pulse racing, nor does London Stock Exchange ($LSEG (-2,11%)). Yet sometimes, however, a steady (boring) company is exactly what you need. All three of these companies have proved they can grow in good times and bad, and benefit from reliable revenues and loyal customers.

On the other hand, sometimes you need to follow boring companies as they try to shake their boring reputation! I’m writing this in a Cafe at Marks and Spencer ($MKS (-2,11%)), who are thriving precisely because it has managed to shed its stale reputation and revitalise its clothing division. Combined with a reliable food business (which I love!) and supply chain improvements, this has led to multiple earnings upgrades and a brighter future.

Similarly, Trainline ($TRN), a travel app which only listed in 2019 and was still posting pre-tax losses in 2022, now has metrics which are improving rapidly as operational gearing kicks in, and the group boasts double-digit operating margins, a high return on capital employed and a very dominant market position.

Where else do you see value in the UK market?