Compounding Value

The best investment stocks are those that: - Consistently grow their dividends - Management/Owners have "Skin in the Game" - Have a moat If course there are many more and different opportunities, but those 3 are doubtlessly accepted. This wikifolio will build a portfolio around these corners: Fundamental Preselection (Basic): - Market Cap > 10 Billion USD - Minimum 5 years old (IPO/Inception) - Free-Cash-Flow Yield is above 6% - The interests paid on the debt (if any) are under 4% Fundamentals Influencing (Advanced): - RoE nearby RoCE - Free-Cash-Flow Margin - Debt and Debt-Outlook - How does the company invests its Free Cash Dividend Preselection: - Yield on average 2% - Consistency of dividend payouts min. 95% - On average in the last 5 years (CAGR 5y), the dividend payouts have not been cut. Moreover the dividend growth shall be higher than the Risk-Free-Asset (> 5%). - While the Subprime-Crises the stocks have to be above its category average. Long Term Outlook: - Due to an inspected raise in energy demand after the recession, growing demand of the BRICS countries and an ever rising population, the overall energy demand will grow. Additionally due to the decade long underinvestments in Coal, Oil and Gas, due to ESG shift, the supply is declining. Therefor energy is overweighted. - The pharma sector will also be slightly overweighted. Dividends will be reinvested according to the current market regime. The weighting of the stocks shall be equal weighted. It is not planned to sell positions, but to build new ones.