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 (-2,25%) (I removed this because the PE LTM was too close to 40)
$BKNG (-2,58%) (I removed this one total return 5Y was too close to 100%)
$KLAC (-11,66%) (added the next one to replace the removed one)
$HCA (-1,67%) (same)
I know that in January the screener results maybe wouldn't be these, and that most companies are the easy ones, but... 30% returns YTD, without using the 10 best performance of the SP500 YTD ($NVDA (-9,34%) , $VST (-7,6%) , $SMCI , $HWM (-5,91%) , $CEG , $TRGP (-2,19%) , $LLY (-1,87%) , $IRM (-9,41%) , $NRG (-4,29%) , $GDDY (+0,9%) and no crypto,)
If I reached half of it every year, I will be very proud of myself.
Hope it helps
