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 (+0,65 %) (I removed this because the PE LTM was too close to 40)
$BKNG (-6,59 %) (I removed this one total return 5Y was too close to 100%)
$KLAC (-7,66 %) (added the next one to replace the removed one)
$HCA (-1,68 %) (same)
I know that in January the screener results maybe wouldn't be these, and that most companies are the easy ones, but... 30% returns YTD, without using the 10 best performance of the SP500 YTD ($NVDA (-6,05 %) , $VST (-12,24 %) , $SMCI , $HWM (-8,25 %) , $CEG , $TRGP (-11,83 %) , $LLY (-3,56 %) , $IRM (-7,45 %) , $NRG (-11,38 %) , $GDDY (-1,8 %) and no crypto,)
If I reached half of it every year, I will be very proud of myself.
Hope it helps
