Thread by @BrianFeroldi

High-return, low-risk stocks do exist

But many of them don't grab financial headlines

Here are 10 high-return, low-risk stocks (that most investors ignore):

What do I mean by “high-return”?

These stocks have CRUSHED the market:

📈Since IPO
📈Over the last 5 Years

They are all long-term winners that keep on winning

What do I mean by “low-risk”?

A combination of:

✅Financially Strong
✅Profitable
✅Consistent Organic Growth
✅High Returns On Capital
✅Wide moat
✅Great Management
✅Recurring Revenue
✅Diversified Customers/Suppliers
✅Low Disruption/Dilution/Volatility

1/ Accenture - $ACN

Consulting is BIG business and Accenture is the industry’s top dog

This company is so consistent that it’s boring to follow, but it’s worked out really well for shareholders

2/ Cintas - $CTAS

Managing employee uniforms is BORING

but this company sure does crank out consistent growth

3/ EPAM Systems - $EPAM

Need custom software? EPAM is the go-to choice for companies worldwide

Sticky clients, consistent growth, and founder-led!

4/ Intuit - $INTU

Tax software? Boring!

Payroll software? Boring

Budgeting software? Boring

But Intuit’s long-term returns sure haven’t been boring!

5/ Moody’s - $MCO

Rating bonds and providing financial data isn't an exciting business

But this business has a wide moat, is HIGHLY profitable, and has hugely rewarded shareholders

6/ MarketAxess - $MKTX

This platform allows bonds to be traded electronically

Boring? Yup!

But WOW is this a lucrative business

7/ Rollins - $ROL

Few investors dream about owning a pest control company

They might want to after they see Rollins’ consistent growth and great long-term returns

8/ Sherwin-Williams - $SHW

Buying a home? You need paint

Selling a home? You need paint

Remodeling a home? You need paint

No wonder this company’s growth is so consistent

9/ S&P Global - $SPGI

Another bond-ratings agency & financial analytics company

Boring? Yup! But a REALLY good business to be in

10/ Verisign - $VRSN

Domain name registration services? Boring!

But WOW has this been a great long-term investment

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Summary:

1: $ACN
2: $CTAS
3: $EPAM
4: $INTU
5: $MCO
6: $MKTX
7: $ROL
8: $SHW
9: $SPGI
10: $VRSN

Does a business have high return & low-risk potential?

Here's how to tell using $UPST as an example