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:
$AAPL (-0,01 %)
$MSFT (+0,31 %)
$GOOGL (+1,36 %)
$META (+0,85 %)
$UNH (-1,69 %) (I removed this because the PE LTM was too close to 40)
$NFLX (-0,71 %)
$QCOM (+2,5 %)
$PGR (-0,32 %)
$BKNG (-1,83 %) (I removed this one total return 5Y was too close to 100%)
$LRCX
$KLAC (+6,09 %) (added the next one to replace the removed one)
$HCA (+0,8 %) (same)
I know that in January the screener results maybe wouldn't be these, and that most companies are the easy ones, but... 30% returns YTD, without using the 10 best performance of the SP500 YTD ($NVDA (+3,48 %) , $VST (+1,03 %) , $SMCI , $HWM (+3,5 %) , $CEG , $TRGP (+3,74 %) , $LLY (+0,21 %) , $IRM (-0,17 %) , $NRG (+0,11 %) , $GDDY (+2,46 %) and no crypto,)
If I reached half of it every year, I will be very proud of myself.
Hope it helps
https://getqu.in/VGUQyv/
