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 (-0,07 %)

$META (-1,93 %)

$MA (-1,24 %)

$BRK.B (+0,39 %)

$AMZN (-0,52 %)

$ASML (+0,24 %)

$MSCI (+0,78 %)

$MC (-1,1 %)

$BKNG (+0,09 %)

$SPGI (+1,23 %)

$ADBE (-0,43 %)

$NOVO B (-1,98 %)

$AIR (+1,52 %)

$CDNS (-1,38 %)

$OR (+0,08 %)

$IDXX (+1,65 %)

$EL (-0,44 %)

$FTNT (-1,07 %)

$LULU (-0,91 %)