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 (-3,12 %) (I removed this because the PE LTM was too close to 40)
$BKNG (-1,93 %) (I removed this one total return 5Y was too close to 100%)
$KLAC (-11 %) (added the next one to replace the removed one)
$HCA (-1,84 %) (same)
I know that in January the screener results maybe wouldn't be these, and that most companies are the easy ones, but... 30% returns YTD, without using the 10 best performance of the SP500 YTD ($NVDA (-9,34 %) , $VST (-6,88 %) , $SMCI , $HWM (-6,22 %) , $CEG , $TRGP (-3,39 %) , $LLY (-2,18 %) , $IRM (-10,55 %) , $NRG (-4,77 %) , $GDDY (+1,3 %) and no crypto,)
If I reached half of it every year, I will be very proud of myself.
Hope it helps
