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10 Stocks Beating Warren Buffett

10 Stocks Beating Warren Buffett

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Compounding Quality
Jun 13, 2024
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10 Stocks Beating Warren Buffett
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Hi Friend 👋

I’m Pieter and welcome to a 🔒 subscriber-only edition 🔒 of Compounding Quality.

Did you know that you can track our Portfolio 24/7? Check it out here.

Furthermore, you’ll probably love our articles ‘10 Stocks to Own Forever’ and ‘Our Forever Portfolio’.

Warren Buffett is amazing.

Since he acquired Berkshire Hathaway in 1965, the stock has increased by 35,000,000%.

This means an investment of $10,000 turned into $3.5 billion!

Over the past 10 years, there have been a few great companies that did even better than Warren Buffett.

Let’s dive in and find out.

Berkshire pares huge Apple stake as cash, operating profit set records |  Reuters

10. Rollins ($ROL)

Rollins provides pest and termite control services through its well-known brands like Orkin. Serving both residential and commercial clients, the company ensures pest-free environments with comprehensive and trusted solutions.

Why is Rollins a good company?

  • Rollins and its main peer Terminix dominate the entire industry

  • Expected long-term growth: 13.0% per year

  • Rollins Owner’s Earnings increased by 14.7% over the past 10 years*

Source: Finchat

* Owner’s Earnings = EPS Growth + Dividend Yield

9. Watsco ($WSO)

Watsco is the largest distributor of HVAC/R products in the Americas. The company provides essential components for heating, cooling, and refrigeration. Its expansive distribution network ensures timely delivery to contractors and technicians.

Why is Watsco a good company?

  • Serial acquirer with a decentralized business model

  • Albert Nahmad has been the CEO since 1972 (!)

  • Watsco’s Owner’s Earnings increased by 15.0% over the past 10 years

You can read the entire investment case of Watsco here.

8. Intuitive Surgical ($ISRG)

Intuitive Surgical is a pioneer in robotic-assisted surgery. Intuitive's da Vinci systems are used by hospitals worldwide to perform minimally invasive procedures. The company's innovation has transformed surgery with precision and efficiency.

Why is Intuitive Surgical a good company?

  • Net cash position and great capital allocation skills

  • Attractive growth: the company should be able to grow by > 10% in the years ahead

  • Intuitive Surgical’s Owner’s Earnings increased by 17.6% over the past 10 years

Source: Finchat

7. Pool Corporation ($POOL)

As the world's largest wholesale distributor of swimming pool supplies and related products, Pool Corp serves over 120,000 customers globally, helping keep pools clean, safe, and fun.

Why is Pool Corporation a good company?

  • One of the best-performing stocks within the S&P 500 ever

  • A lot of their sales are recurring in nature (around 60%)

  • Pool Corporation’s Owner’s Earnings increased by 20.6% over the past 10 years

6. Interactive Brokers ($IBKR)

Interactive Brokers is an electronic brokerage firm offering trading platforms for professional and retail traders.

Known for its low commissions and extensive market access, it caters to investors looking for a comprehensive trading experience.

I use Interactive Brokers myself so I know the company quite well. You can discover more here.

Why is Interactive Brokers a good company?

  • More people have started to see the importance of investing and IBKR benefits from this

  • IBKR is very efficient and is one of the lowest-cost brokers that are available

  • Interactive Brokers’s Owner’s Earnings increased by 20.6% over the past 10 years

Source: Finchat

5. Old Dominion Freight ($ODFL)

ODFL is a leading less-than-truckload (LTL) carrier.

The company's robust logistics network ensures efficient and reliable transportation services across North America, supporting businesses with timely freight deliveries.

Why is Old Dominion Freight a good company?

  • ODFL is the best-run LTL carrier in the United States

  • It’s almost impossible for other companies to compete with ODFL

  • ODFL Owner’s Earnings increased by 21.2%

4. Lululemon Athletica ($LULU)

Lululemon Athletica designs and sells high-quality athletic apparel.

Known for its innovative fabrics and stylish designs, the brand has cultivated a loyal following among fitness enthusiasts and casual wearers.

Why is Lululemon Athletica a good company?

  • Net cash position and great capital allocation skills (ROIC: 33.5%)

  • Lululemon grows consistently faster than competitors like Nike and Adidas

  • Lululemon Athletica’s Owner’s Earnings increased by 22.2% over the past 10 years

Source: Finchat

Now let’s dive into the top 3.

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