I use it to create investment cases and find interesting stocks to buy.
Today I’ll show you how to screen for getting rich, staying rich, and living rich stocks.
1. Multiple Roads
First of all, it’s important to understand that multiple roads lead to Rome.
You can use different screening criteria to find great stocks.
There is also no golden truth in the criteria used in these screeners.
2. Getting rich, staying rich and living rich
I’ll show you three screening criteria you can use to find the best companies in the world.
Getting rich: Quality Stocks with a lot of growth potential
Staying rich: Established Quality Stocks
Living rich: Quality Stocks with a good dividend yield
"If a business earns 18% on capital over 20 or 30 years, even if you pay an expensive looking price, you’ll end up with one hell of a result." — Charlie Munger
Here are 10 stocks with a return on capital > 20%:
1. Alphabet (GOOGL) ROIC: 32.1%
Alphabet is the parent company of Google, which makes money mainly through ads.
It also owns YouTube, Android, and invests in AI and other tech projects.
2. Eli Lilly (LLY) ROIC: 27.1%
Eli Lilly is a drug company known for making treatments for diabetes, cancer, and now obesity.
It’s growing fast thanks to its new blockbuster drugs.