There are as many dog breeding philosophies as there are people who breed dogs. This is what I believe in: 

While having a "Champion" title in front of a dog's name can be somewhat of an indicator of the dog's quality, it must be carefully examined and studied to determine if that dog gained its title with Specialty wins and big majors won at important shows over good competition or just shown sporadically over time picking up points here and there until it finishes. All champions are not equal and "champion lines" must be something more than a collection of red print on a pedigree.

One of the prime indicators of breed value on a pedigree is the honorary title of TP (Top Producer) recognized by PCA. In the Standard variety it is given to bitches who have produced three or more champion offspring and dogs who have produced at least five champion offspring. Both can have many more than that over their lifetimes. They need not be finished champions but have proven themselves to be of exceptional reproductive quality capable of passing on their best characteristics to the next generation, sometimes with effects on many, many generations to come.

One of the best ways a breeder can ensure the continued quality of dogs that carry their kennel name is to mate parents that are genetically related and have traits in common that a breeder can be reasonably certain will show up in the resulting puppies. While offspring that result from an outcross and have little genetic material in common can be spectacular due to the hybridization of the first generation, they in turn cannot be consistent in reproducing those traits in their own offspring and therefore perform best in a continuous cycle of outcrossing.

Show wins are only part of the equation. Can your future show dog reproduce its best qualities when the time comes? Many highly recognizable kennels of the past in different breeds practice close linebreeding with an occasional outcross to bring in a needed trait. This practice, along with some inbreeding if warranted, is how the distinct lines are formed that becomes the hallmark of a successful breeder. This takes careful consideration of type, temperament, and conformation when evaluating a litter of young pups. Novices tend to grade puppies according to gender, color or size instead of how closely the young prospect conforms to the standard for the breed. There can be both companion and show quality puppies in well bred litters. It takes an honest and experienced breeder to accurately grade the young puppies.