How I screen for quality companies:
- ROIC > 20%
- Profit margin > 15%
- Revenue growth past 5 years > 7%
- EPS Growth past 5 years > 10%
- Net Debt / FCF < 3
- (FCF/Earnings) > 90%
- ROIC > 20%
- Profit margin > 15%
- Revenue growth past 5 years > 7%
- EPS Growth past 5 years > 10%
- Net Debt / FCF < 3
- (FCF/Earnings) > 90%
The results:
Looking for even more inspiration?
Take a look at these 15 Owner-Operator stocks:
qualitycompounding.substack.com
Take a look at these 15 Owner-Operator stocks:
qualitycompounding.substack.com
Hereβs the performance of my investable universe.
Since 2011, the investable universe (Compounding Quality) increased with 1100% (!) compared to 184% for the MSCI World.
Since 2011, the investable universe (Compounding Quality) increased with 1100% (!) compared to 184% for the MSCI World.
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