North America Top X Compounders

This wikifolio focuses on building a concentrated portfolio of 10 North American companies with a market capitalization exceeding 10 billion euros. The selection centers on businesses that reinvest efficiently into their core operations, execute targeted and value-accretive acquisitions, and engage in shareholder-friendly activities such as share buybacks. The quality of management plays a central role in the selection process. Management teams are assessed based on their historical capital allocation decisions and their ability to deliver sustainable value creation. Key metrics include Return on Invested Capital (ROIC), Return on Capital Employed (ROCE), and Return on Equity (ROE), evaluated in the context of each company's sector and business model. Also a consistent track record of business growth is essential. Core indicators include free cash flow per share, earnings per share, revenue growth, and margin stability. Companies must show the ability to grow intrinsic value while maintaining financial strength and operational resilience. The portfolio follows a "buy, hold, and check" principle. Investments are intended to be held for a minimum of three years, 12 quarters, provided the original investment thesis remains intact. Positions are reviewed continuously. Reductions or exits may occur if: -Management engages in actions likely to destroy shareholder value, such as questionable acquisitions, poor asset sales, or excessive dilution. -The company faces major legal challenges. -Fundamental deterioration in the business model becomes evident, e.g., persistent margin declines or rising costs. -A single position exceeds 30% of the total portfolio, creating undesired concentration risk. -Continued increase in uncertainty. Investment decisions are based on thorough research using sources such as the Godel Terminal, company earnings calls, shareholder letters, and quarterly reports, supplemented by analysis tools like Marketscreener, Alpha Spread, and Onvista.