A screen as described by Compounding Quality (@QCompounding), a former professional investor. The screen focusses on quality stocks with low capital intensity and generating increasingly large free cash flows. A detailed description and discussion of the screen can be found in the linked article.
When the market takes a hit, fear and uncertainty dominate the headlines. Many traders rush to the sidelines, worried about further losses. But smart investors know that stock market corrections aren’t a time to panic - they’re a time to prepare.
How can we find the best companies in the world? This screener would be a good start: finding the best compounding quality companies, as described by Compounding Quality.
Great capital allocation: high ROIC
Great capital allocation: high ROCE
Low Capital Intensity
High Profitability: high profit margin
High Profitability: high FCF margin
A gross margin of at least 40%
Secular Trend: at least 5% revenue growth
Secular Trend: at least 7% earnings growth
Long term chart
Run this screen in your favorite region. You can always further fine tune the screen by changing the general settings after it opened in the screener.