5 Financial Metrics to Identify a Compounder:

Jeff Bezos once said:

'You can be grinding for 4 years with no results, and in the 5th year, become the biggest thing on the planet. The power of not giving up is real'

Here are 10 Incredible Lessons from Jeff Bezos:

Chipotle Mexican Grill 🌮

Operational
•ROIC 5Y: 12.9%
•Gross margin: 41%
•Operating margin: 16.3%
•FCF/Net Income: 146%

Growth
•Revenue 5Y CAGR: 15.22%
•EPS 5Y CAGR: 45%
•FCF 5Y CAGR: 33.5%

Valuation
•Forward PE: 56
•Forward FCF yield: 1.4%

10 Quality businesses with a low Price to free cash flow:

Peter Lynch on how he achieved a 30% compounded annual growth rate in his fund

MSCI Business Rundown $MSCI 📊

Operational:
- ROIC: 25.8%
- Gross margin: 82%
- Operating margin: 54%
- FCF/Net Income 5Y: 119%

Growth 5Y:
- Rev: 12.5%
- Op. income: 16%
- EPS: 17.7%

Valuation:
- Fwd. PE: 33.5
- EV/EBIT: 28
- FCF Yield: 3.1%

10 Quality Healthcare Companies 🏥

1. Pfizer
2. BioGaia
3. Merck & Co
4. Novo Nordisk
5. United Health
6. Danaher Corp
7. Veeva Systems
8. Intuitive Surgical
9. Johnson & Johnson
10. Thermo Fisher Scientific

What's missing?

MSCI Business Rundown $MSCI 📊

Operational:
- ROIC: 25.8%
- Gross margin: 82%
- Operating margin: 54%
- FCF/Net Income 5Y: 119%

Growth 5Y:
- Rev: 12.5%
- Op. income: 16%
- EPS: 17.7%

Valuation:
- Fwd. PE: 33.5
- EV/EBIT: 28
- FCF Yield: 3.1%

Top 10 holdings of Morningstar Wide Moat Focus:

1. Alphabet 💻
2. RTX Corp. ✈
3. Teradyne 💾
4. Charles Schwab 📊
5. Tyler Technologies 💻
6. Corteva 🌾
7. International Flavors & Fragrances 💨
8. Estee Lauder 💄
9. Campbell Soups 🥘
10. Allegion 🔐