Compounding Quality

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My 10 Favorite Stocks for 2024

My 10 Favorite Stocks for 2024

Stocks you need to know

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Compounding Quality
Dec 31, 2023
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My 10 Favorite Stocks for 2024
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It’s the last day of the year.

2024 will be a year full of amazing opportunities.

Today you’ll find out about my 10 favorite stocks for 2024.

10 Favorite Stocks 2024

10. Ameriprise Financial ($AMP)

Company Profile

Ameriprise Financial is a company providing financial planning, investment management, and advisory services.

They work with individuals, businesses, and institutions to offer a range of financial products including retirement planning, wealth management, insurance, and asset management solutions.

Investment rationale

  • Cannibal stock (outstanding shares decreased by almost 50% since 2014)

  • Cheap valuation: PE of 12.8x

  • Heavy share buybacks + cheap valuation = great for investors

9. Text SA ($TXT)

Company Profile

Text SA is a Software as a Service (SaaS) company. Almost all its revenue is recurring in nature.

The company manages text communication with customers both in business-to-consumer (B2C) and business-to-business (B2B) sectors.

Investment rationale

  • Overlooked Compounding Machine

  • Net profit margin of over 50% (!)

  • Trading at very cheap valuation levels (PE: 16.1x)

8. Medpace ($MEDP)

Company Profile

Medpace is a Clinical Research Organization that executes (pre)clinical tests for biotechnology companies.

It’s important to highlight that Medpace itself is not a biotechnology company. They help biotechnology companies execute their clinical tests, providing them with robust cash flows.

Investment rationale

  • Owner-Operator Quality Stock

  • The end market should be able to grow by 11.5% (!) per year until 2030

  • Medpace is a great example of a wonderful company at a fair price

7. LVMH ($MC)

Company Profile

LVMH is a global producer and distributor of luxury goods.

The French company is a dominant force in the luxury industry with a diverse portfolio of brands that cover a wide range of consumer products and experiences.

Investment rationale

  • Bernard Arnault is an excellent Owner-Operator

  • Strong moat based on pricing power and an excellent reputation

  • Healthy fundamentals and a strongly growing end market

6. Kinsale Capital ($KNSL)

Company Profile

Kinsale Capital is an insurance company specializing in excess and surplus lines insurance.

They focus on providing coverage for hard-to-place risks or unique insurance needs that may not be served by standard insurance companies.

Investment rationale

  • Founder and CEO Michael Kehoe is a strong asset for the company

  • The stock fell significantly after the publication of its Q3 results

  • Management targets 10-20% growth per year

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