Summary
- Retail investors without the time, background and access to sophisticated financial platforms may be better off with a more passive approach, investing in the best companies.
- The article shows the best companies in the U.S. based on high margins, high returns and positive cash flow generation for the past 5 and 10 yrs.
- Based on estimated growth and multiples from Bloomberg and Value Line, potential entry prices are calculated that would generate decent returns to investors.
- GILD, BIIB, and CERN appear the most attractive currently, based on the scenarios ran.
Attached spreadsheet allows investors to run their own scenarios.
I developed my investment strategy in order to outperform the market for both myself and my institutional clients, but active portfolio management is not for everyone. The truth is that the great majority of the public do not have the tools or the background and are better off either indexing or holding a diversified portfolio of excellent companies. This article will discuss a list of potential excellent companies that less active (than myself) investors can consider. Potential entry prices are calculated and a spreadsheet is attached for readers to use.
