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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 πŸ‘‹

I’m Pieter and welcome to aΒ πŸ”’ subscriber-only edition πŸ”’Β 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 β€˜10 Stocks to Own Forever’ and β€˜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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