Update Buy-Hold-Sell List: March 2026
Quality is getting cheaper while the world watches oil
Times are challenging for quality investors today.
A lot of high-quality companies are on sale.
There have never as much ‘Buys’ on Our Buy-Hold-Sell List as today.
Let’s dive in right away.
All-time highs
Even despite the war in the Middle East, the S&P 500 still trades near its all-time high.
Is this a moment to take some profits from the table?
As Warren Buffett said: “Be fearful when others are greedy and greedy when others are fearful.”
Let’s take a deeper look.
The Magnificent Seven has done most of the heavy lifting over the past few years:
Apple (AAPL)
Microsoft (MSFT)
Alphabet (GOOGL)
Amazon (AMZN)
NVIDIA (NVDA)
Meta Platforms (META)
Tesla (TSLA)
These seven companies make up over 30% of the S&P 500.
Excluding The Magnificent Seven, the returns of the S&P 500 over the past few years are much lower:
The same is true for the valuation levels.
The chart below compares the Forward P/E of the index's top 10 companies against the rest.
Once the largest companies are removed, the broader market appears far more reasonably valued.
I compared some of the world’s best investors against the S&P 500.
Red: the investor is trailing the S&P 500
Green: the investor is beating the S&P 500
Top investors like Terry Smith, Chuck Akre, Warren Buffett, and Bill Ackman have all fallen short of the index over the past three years.
Two key lessons stand out:
The market is acting strangely. The index itself is trading at high valuations.
This creates real opportunities in stocks that have recently lagged the index. Many of them look undervalued today.
An example: Quality at a discount
You want to own quality companies that generate real cash flows.
A great example of this? Topicus ($TOI.V).
Topicus is a spin-off from Constellation Software. They structurally acquire small Vertical Market Software companies in Europe.
Here’s what their growth numbers look like:
5-year Revenue (CAGR): +25.7%
5-year Operating Profit (CAGR): +20.6%
I expect this company to keep growing by at least 15% per year going forward.
Since 2021, Topicus doubled its Revenue and Operating Profit.
That’s amazing.
So what if you invested in Topicus during the summer of 2021?
Your return would be zero.
Topicus is now trading at one of its cheapest valuation levels ever:
You should always keep this quote from Warren Buffett in your mind:
“Anybody that is going to be a net saver is more likely to be a net buyer of stocks over the next ten years than they are a net seller. So every one of you should prefer lower prices.”
It may sound weird, but stocks are like hamburgers.
You should pray for lower stock prices.
I truly believe Topicus is attractively valued right now.
That’s why a company like Topicus could offer great opportunities today.
Buy-Hold-Sell List: March 2026
Let’s now update our Buy-Hold-Sell List.
Worst performers
The 10 worst performers on our watchlist so far this year:
Best performers
The 10 best performers on our watchlist so far this year:
Update Buy-Hold-Sell List
Now lets look into the changes on our watchlist.
One company was removed from the watchlist:
Goeasy: Goeasy provides loans to non-prime customers in Canada who have been turned down by big banks. We decided to remove the company from our watchlist for 2 main reasons:
Both the CEO and CFO left the company in 2025
Governments are capping interest rates. This directly impacts the profitability of goeasy
Two companies went from Sell to Hold:
Fair Isaac: A provider of the industry-standard FICO credit score
Equifax: One of the three major U.S. credit reporting agencies
Two companies went from Buy to Hold:
Dream Finders Homes: A fast-growing homebuilder in the US
Watsco: The largest distributor of HVAC equipment and parts in North America
Three companies went from Hold to Buy:
S&P Global & Moody’s: Duopoly in global credit ratings
Pool Corp: A dominant distributor in the swimming pool supply industry
Currently there are 45 stocks on ‘Buy’.
This number has almost never been higher.
You can download the entire Buy-Hold-Sell List here: