Our research is designed for sophisticated growth investors with portfolios of over $1 million. If this is you, we offer a complimentary report on the largest positions in the portfolios of the ten growth portfolio managers with the most exceptional ten-year records. There are one hundred seventy companies in total. The reports, each eleven pages long, explore the key financial statement characteristics indicative of future performance potential. Companies appear in order, strongest financial statement trends to weakest.
The complimentary report on the 25 largest holdings in the portfolios of the best-performing growth managers over the last ten years covers 170 companies. To gain a quick understanding of our conclusions, scroll through the Summary report. Click on the ticker of any company to access the 11-page Detailed report. In total, there are 1,870 of research accessible through these links.
Of the 170 companies held by Master Investors only four qualify as SuperGrowth MultiBaggers. Of the thousands of public companies, only ten qualify. Several additional would qualify if not for their high current stock price, which represents such poor value that even with their exceptional growth, investors are unlikely to achieve strong returns over the next five years. The row “Estimated Annual Appreciation Potential (Over Next Five Years)” indicates our estimate based on free cash flow and intrinsic value growth in recent years in relation to stock price, extrapolated onto current stock price. It is very rough, and full of assumptions that may or may not be valid. Any company with an estimated annual return potential of less than 10% is removed from the SuperGrowth MultiBagger list. This is in recognition of the fact that almost half of MultiBagger returns comes from free cash flow multiple expansion. We see our role as developer or software that calculates probabilities by weighing thousands of factors, each of which has an impact on stock price performance, major or minor.
As an example, Apple has an estimated annual appreciation potential of negative 16%, despite free cash flow growth over the last twelve months of 13%.
Companies appear in order, strongest financial statement trends to weakest.