List
Quality compounders
Businesses that earn high returns on the money they reinvest, and keep growing, can compound value for decades. These are the companies long-term investors dream of holding.
12 companies
from 73 large US companies| Company | Why it's here | Size | Quality | Health | Return on capital | Growth | vs usual price |
|---|---|---|---|---|---|---|---|
| SPGI S&P Global | ROIC 120.6% · revenue 11.2%/yr | – | 5/7 | 7 | 120.6% | 11.2% | – |
| NVDA NVIDIA | ROIC 82.6% · revenue 45.7%/yr | $5.18tn | 5/7 | 4 | 82.6% | 45.7% | – |
| MA Mastercard | ROIC 79.3% · revenue 12.0%/yr | $542bn | 6/7 | 8 | 79.3% | 12.0% | – |
| ADBE Adobe | ROIC 45.9% · revenue 17.4%/yr | $103bn | 6/7 | 7 | 45.9% | 17.4% | – |
| MSFT Microsoft | ROIC 44.0% · revenue 13.8%/yr | $3.88tn | 6/7 | 6 | 44.0% | 13.8% | – |
| AMAT Applied Materials | ROIC 43.4% · revenue 11.4%/yr | $304bn | 6/7 | 6 | 43.4% | 11.4% | – |
| GOOGL Alphabet | ROIC 40.4% · revenue 18.3%/yr | – | 4/5 | 6 | 40.4% | 18.3% | – |
| COST Costco | ROIC 38.7% · revenue 9.8%/yr | $446bn | 7/7 | 6 | 38.7% | 9.8% | – |
| V Visa | ROIC 37.9% · revenue 11.2%/yr | $757bn | 4/5 | 5 | 37.9% | 11.2% | – |
| META Meta Platforms | ROIC 37.5% · revenue 27.3%/yr | $1.64tn | 6/7 | 5 | 37.5% | 27.3% | – |
| PYPL PayPal | ROIC 18.0% · revenue 13.6%/yr | – | 7/7 | 8 | 18.0% | 13.6% | – |
| UNH UnitedHealth | ROIC 17.5% · revenue 11.0%/yr | $370bn | 7/7 | 7 | 17.5% | 11.0% | – |
The rules
Five-year average return on capital of 15%+, revenue growing 7%+ a year over the decade, and passing at least 70% of our long-term quality checks. Sorted by return on capital.
Keep in mind: Great businesses are often priced as great businesses. Check the valuation against its own history before buying. Being on a list is not a recommendation.
Other lists: Dividend growers · Cheaper than usual · Cash-rich fortresses · Biggest cash returns