The biggest edge of investors like you and me? We are able to invest in smaller companies. In this article you’ll find a list with 15 Quality Stocks you’ve never heard of. I am quite comfortable to state that this list will outperform the S&P500 over the next decade.
thank you for this wonderful list of great businesses and ideas!
Most of the companies are on my watch list already.
Have a great weekend! Hopefully the weather cools down a bit in Europe. After a month of vacationing in 40+ degrees weather, last night I came back to a "chilly" 14 degrees in Calgary! My wife had to turn the furnace on! Lol!
I look forward to reading your article on Tuesday next week!
As your article already proves that those stocks are quality stocks, do you think that a good way to know if it's the right moment to buy them or not can be to (almost) "just" check at the current Price/Cash Flow Vs the average 5 years Price/Cash Flow. If the current Price/Cash Flow is under, could it be a good sign to buy it?
(Sorry, I'm in holidays so I've plenty of questions that I've time to ask :) )
That's indeed a good first indication to determine whether the stock is undervalued/overvalued.
When the stock is trading cheaper than it's 5 and/or 10-year average and the future still looks as bright as it used to be a few years ago, you're on the right track.
I never looked into them deeply. Purely looking at the fundamentals it looks attractive but I've also heard some rumors about potential fraud so I would be cautious with it personally.
Thanks for sharing, what’s are good filters to screen these gems?
Hi Isaac,
I use Bloomberg to screen for these companies.
You can use criteria like the ones explained here: https://www.compoundingquality.net/p/screen-for-quality-stocks
#1 is fantastic. Great list btw.
How many of them do you own? :)
Only #1 - OTC Markets
Here's our piece the company:
https://specialsituationinvesting.substack.com/p/otc-markets-group-b1f#details
I'll listen to it during commute tomorrow!
Thank you for posting. Wow, crazy and quality post. I will do the research and invest in these companies.
Always do your own research! Starting from the 1st of October, I'll share my portfolio so interesting times are ahead!
Why 1st October ? Any significance for the date ?
I'll explain everything very soon! :)
Excited, looking forward to it 😍 :)
hellou maybe Fastenal Company, Danaher Corporation, Plejd ?
2 Beautiful companies, Radovan!
CQ,
thank you for this wonderful list of great businesses and ideas!
Most of the companies are on my watch list already.
Have a great weekend! Hopefully the weather cools down a bit in Europe. After a month of vacationing in 40+ degrees weather, last night I came back to a "chilly" 14 degrees in Calgary! My wife had to turn the furnace on! Lol!
I look forward to reading your article on Tuesday next week!
Giving that you know most of these names already ... you're a professional, Pavel!
Thursday's article will cover the question whether markets are efficient.
Talk to you soon!
Can you please publish such lists more frequently? 😻😻😻
Starting from October, you'll receive my investable universe, portfolio, and much more lists. Stay tuned!
Thanks! I have one request (actually I asked about it before) - can you please share your knowledge ex. US too? 👀
Hi Bohdan,
If you want to, I can send you a list via email. You can reach out to me via compoundingquality@gmail.com.
I haven't published yet because there are also a lot of non-European readers which might find an article like this less relevant.
Actually knew about half of the list. We have a few in our funds. 👍🏽
And great list by the way 🤩
What's the name of the fund? You made me curious right now! :)
Swedish fund called Didner & Gerge US Small & Microcap. 👌🏽
Interesting. Thanks!
Let me know what you think of the portfolio 👍🏽
$OTCM 👏
And the CEO/Founder is a very nice guy too ;)
As your article already proves that those stocks are quality stocks, do you think that a good way to know if it's the right moment to buy them or not can be to (almost) "just" check at the current Price/Cash Flow Vs the average 5 years Price/Cash Flow. If the current Price/Cash Flow is under, could it be a good sign to buy it?
(Sorry, I'm in holidays so I've plenty of questions that I've time to ask :) )
Hi Axel,
That's indeed a good first indication to determine whether the stock is undervalued/overvalued.
When the stock is trading cheaper than it's 5 and/or 10-year average and the future still looks as bright as it used to be a few years ago, you're on the right track.
How about InMode?
Hmm, how did you find them? Looks interesting...
Hi Rohan and Bohdan,
I never looked into them deeply. Purely looking at the fundamentals it looks attractive but I've also heard some rumors about potential fraud so I would be cautious with it personally.