The Quality Growth Watchlist Part 2 📈
20 high quality compounders 🧠
Hello dear subscriber, I’m wishing you a happy new year! Let’s compound our portfolios even further in 2024.
Welcome to part 2 of the Quality Growth Watchlist! If this article brings you value, be kind and leave a like and a comment. That’s our gentleman's agreement 💎
If you haven’t read part one, read it here:
Introduction
My investable universe consists of more than 200 global companies. Keeping track of all 200 can be a daunting task. Therefore, I use a watchlist where I have around 20 high-quality compounders that I follow. I track their earnings and business over time, as well as the valuation. If one of them were to fall in price to my purchase area, I would consider taking a position in these businesses. In case you missed the investable universe article:
The companies on the shortlist have crushed the S&P 500 over time and continue to create value for shareholders year after year. They produce high returns on capital, have plenty of room to grow, and are considered market leaders or market gainers in their respective markets.
For a company to get into the watchlist it requires a couple of things:
A strong product or service with high and growing demand
A competitive advantage that is ideally growing wider
A competent management team with skin in the game
A margin of safety that reduces the risk of investment
A long track record of market-beating results
Check out our investing service here if you are interested:
Without further ado here is the quality growth watchlist: