My investable universe

When I‘m screening markets for my investable universe I look for high-quality compounders with:

• Strong and consistent capital returns (ROCE)
• High and stable profitability (gross, operating, and FCF margins)
• Steady revenue growth over time
• Large market capitalization (mature, established companies)

In detail I’m screening for:

• Market Cap: at least $ 10B
• ROCE 3-Year Avg: ≥ 25%
• ROCE 10-Year Avg: ≥ 25%
• Gross Margin 3-Year Avg: ≥ 50%
• FCF Margin 3-Year Avg: ≥ 20%
• Operating Margin 10-Year Avg: ≥ 25%
• Revenue per share CAGR 3-Year: ≥ 5%
• Revenue per share CAGR 10-Year: ≥ 5%
• FCF per share CAGR 3-Year: ≥ 10%
• FCF per share CAGR 10-Year: ≥ 10%
• Consistency/stability of earnings (from max. 1.0): ≥ 0.8
• No more than 75% revenue exposure to one single country/market (eg. USA)

Here are my current holdings:

$MSFT (-3,8%)

$META (-4,37%)

$MA (-2,45%)

$BRK.B (-1,63%)

$AMZN (-7,55%)

$ASML (-2,1%)

$MSCI (-2,28%)

$MC (-2,33%)

$BKNG (-3,64%)

$SPGI (-2,4%)

$ADBE (-3,84%)

$NOVO B (+1,26%)

$AIR (-3,78%)

$CDNS (-3,72%)

$OR (-2,69%)

$IDXX (-1,29%)

$EL (-1,22%)

$FTNT (-3,98%)

$LULU (-5,1%)