My investable universe

When I‘m screening markets for my investable universe I look for high-quality compounders with:

• Strong and consistent capital returns (ROCE)
• High and stable profitability (gross, operating, and FCF margins)
• Steady revenue growth over time
• Large market capitalization (mature, established companies)

In detail I’m screening for:

• Market Cap: at least $ 10B
• ROCE 3-Year Avg: ≥ 25%
• ROCE 10-Year Avg: ≥ 25%
• Gross Margin 3-Year Avg: ≥ 50%
• FCF Margin 3-Year Avg: ≥ 20%
• Operating Margin 10-Year Avg: ≥ 25%
• Revenue per share CAGR 3-Year: ≥ 5%
• Revenue per share CAGR 10-Year: ≥ 5%
• FCF per share CAGR 3-Year: ≥ 10%
• FCF per share CAGR 10-Year: ≥ 10%
• Consistency/stability of earnings (from max. 1.0): ≥ 0.8
• No more than 75% revenue exposure to one single country/market (eg. USA)

Here are my current holdings:

$MSFT (-1.05%)

$META (-2.04%)

$MA (+1.3%)

$BRK.B (+1.61%)

$AMZN (-1.34%)

$ASML (+0.03%)

$MSCI (+2.32%)

$MC (+2.03%)

$BKNG (+1.06%)

$SPGI (+0.86%)

$ADBE (+1%)

$NOVO B (+1.3%)

$AIR (-0.66%)

$CDNS (-2.27%)

$OR (+1.29%)

$IDXX (-0.04%)

$EL (+1.66%)

$FTNT (-3.33%)

$LULU (-2.88%)