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 (-4 %)
$MSFT (-1,53 %)
$GOOGL (-2,9 %)
$META (-2,42 %)
$UNH (-1,39 %) (I removed this because the PE LTM was too close to 40)
$NFLX (-1,29 %)
$QCOM (-2,38 %)
$PGR (-1,75 %)
$BKNG (-0,2 %) (I removed this one total return 5Y was too close to 100%)
$LRCX
$KLAC (-2,12 %) (added the next one to replace the removed one)
$HCA (-0,73 %) (same)
I know that in January the screener results maybe wouldn't be these, and that most companies are the easy ones, but... 30% returns YTD, without using the 10 best performance of the SP500 YTD ($NVDA (-2,11 %) , $VST (+1,56 %) , $SMCI , $HWM (+0,5 %) , $CEG , $TRGP (+0,09 %) , $LLY (-1,26 %) , $IRM (-0,35 %) , $NRG (+0,71 %) , $GDDY (-1,53 %) 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/
