Just wanted to share a little test I'm using as benchmark:
I selected by screener the biggest 10 companies by Market Cap with these parameters:
- ROIC > 15%
- Net debt / EBITDA LTM <3x
- Total return 5Y >100% (20% CAGR)
- PE NTM <40x
- Analysts Estimated EPS Forwards 5Y CAGR >12%
Equal weighted buying in January 2nd 2024
Results:
$UNH (-2 %) (I removed this because the PE LTM was too close to 40)
$BKNG (-2,79 %) (I removed this one total return 5Y was too close to 100%)
$KLAC (-6,34 %) (added the next one to replace the removed one)
$HCA (-3,68 %) (same)
I know that in January the screener results maybe wouldn't be these, and that most companies are the easy ones, but... 30% returns YTD, without using the 10 best performance of the SP500 YTD ($NVDA (-7,25 %) , $VST (-8,8 %) , $SMCI , $HWM (-10,39 %) , $CEG , $TRGP (-10,07 %) , $LLY (-7,56 %) , $IRM (-6,35 %) , $NRG (-9,08 %) , $GDDY (-8,26 %) and no crypto,)
If I reached half of it every year, I will be very proud of myself.
Hope it helps
