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 (+1,9 %)

$MSFT (+1,74 %)

$GOOGL (+0,02 %)

$META (+0,41 %)

$UNH (-0,25 %) (I removed this because the PE LTM was too close to 40)

$NFLX (-1,47 %)

$QCOM (+0,26 %)

$PGR (+0,24 %)

$BKNG (-0,77 %) (I removed this one total return 5Y was too close to 100%)

$LRCX

$KLAC (+1,31 %) (added the next one to replace the removed one)

$HCA (+0,13 %) (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 (+0,32 %) , $VST (+2,55 %) , $SMCI , $HWM (+1,79 %) , $CEG , $TRGP (+0,53 %) , $LLY (-0,45 %) , $IRM (-1,95 %) , $NRG (+4,29 %) , $GDDY (-2,36 %) 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/