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 (+0,41%)

$META (-1,26%)

$MA (-2,45%)

$BRK.B (-0,45%)

$AMZN (+0,72%)

$ASML (-0,15%)

$MSCI (-3,27%)

$MC (-2,64%)

$BKNG (-0,25%)

$SPGI (-0,43%)

$ADBE (-2%)

$NOVO B (-3,08%)

$AIR (-0,76%)

$CDNS (-0,34%)

$OR (-2,48%)

$IDXX (-1,33%)

$EL (-3,31%)

$FTNT (-1,24%)

$LULU (-0,95%)