Investment—20 Quality Stocks

Figure 1.  Danaher ($DHR)

On Twitter, @QCompounding had shared the below 20 quality stocks for your investment consideration.

Company Name	Business Description
S&P Global	S&P Global provides clients with financial information services (credit ratings, benchmarks, ...) in the capital and commodity markets.
ASML	ASML is a monopolistic player in semiconductor chip machines through lithography. Over the next years, demand for semiconductors will explode.
Novo Nordisk	Novo Nordisk is active in diabetes treatment. More and more people will suffer from diabetes due to our aging population and obesity.
Mastercard	Together with Visa, Mastercard dominates the attractive market of financial transaction processing.
Microsoft	Everyone knows Microsoft and you will probably use it daily. Microsoft has a very wide moat in software applications and cloud storage.
Blackrock	Do you own an ETF from iShares? That’s a Blackrock product. BlackRock provides investment management services to investors.
Thermo Fisher	Thermo Fisher manufactures scientific instruments, consumables, and chemicals. The company has a wide moat with attractive margins.
Automatic Data Processing	ADP s a global provider of business outsourcing solutions. ADP’s services include human resource, payroll and tax solutions.
Zoetis	More people are treating their pets as a full family member, and Zoetis fully benefits from this with animal health medicines and vaccines.
Union Pacific	Union Pacific is a rail transportation company. The company operates in an oligopoly together with BNSF (part of Berkshire Hathaway).
Moody’s	Just like S&P Global, Moody’s is a credit rating company. Both companies are dominating the credit rating market and still will in 20 years.
Sonova	Sonova is a market leader in premium hearing aids. More and more people are suffering from hearing problems and this is beneficial for Sonova.
Visa	Visa is a great quality business with a wide moat and incredible profit margins. When you invest in Visa, you invest in a strong secular trend.
Danaher	Danaher is a great acquirer active in medical instruments and life sciences. Furthermore, they also provide COVID tests.
TransUnion	TransUnion operates as a credit reporting agency offering consumer reports, risk scores, analytical services, and decision capabilities.
Stryker	Stryker is active in specialty surgical and medical products. Hospitals are very loyal which is beneficial for Stryker.
IDEXX	Together with Zoetis, IDEXX dominates the American market for animal health medicines and vaccines.
Rightmove	Rightmove is the clear number 1 in the market for selling listed properties in the United Kingdom.
Adobe	Adobe is a true compounding stock active in computer software products and technologies allowing users to express information across all media.
Copart	Copart provides vehicle suppliers with services to sell vehicles . The company dominates the market for online car auctions.

Company Symbol	FCF margin	ROCE	FCF yield	Exp. FCF growth (3 yr)	CAGR since IPO
$SPGI	42.90%	126.30%	4.40%	16.90%	13.70%
$ASML	53.40%	41.50%	2.50%	18.30%	25.30%
$NOVO-B	34.60%	101.90%	3.20%	15.60%	19.90%
$MA	48.00%	188.50%	3.20%	15.80%	31.00%
$MSFT	32.90%	45.40%	3.60%	15.30%	23.00%
$BLK	23.80%	11.70%	5.90%	12.30%	19.80%
$TMO	17.30%	46.10%	3.30%	10.10%	13.50%
$ADP	17.70%	132.60%	3.30%	12.50%	14.90%
$ZTS	22.30%	32.90%	2.90%	10.60%	20.90%
$UNP	28.00%	14.20%	5.10%	8.50%	13.30%
$MCO	30.00%	72.80%	3.00%	10.00%	14.80%
$SOON	24.30%	50.70%	4.40%	13.30%	15.50%
$V	60.20%	105.30%	4.50%	15.50%	22.30%
$DHR	24.00%	60.90%	4.00%	9.50%	19.60%
$TRU	19.70%	151.70%	4.10%	25.90%	15.10%
$SYK	16.00%	9.10%	3.00%	12.80%	17.90%
$IDXX	19.80%	86.50%	2.00%	13.00%	20.70%
$RMV	63.70%	287.40%	5.12%	7.40%	19.10%
$ADBE	43.60%	125.20%	5.10%	20.00%	17.60%
$CPRT	24.00%	27.40%	3.20%	8.20%	20.00%

Read Also

1. 15 Quality stocks you should know (Compounding Quality)
• Apple ($AAPL), Microsoft ($MSFT), Monster Beverage ($MNST), Alphabet ($GOOGL), Visa ($V), Evolution AB ($EVO), Nvidia ($NVDA), Accenture ($ACN), Old Dominion Freight Line ($ODFL), Adobe ($ADBE), Synopsys ($SNPS), InMode ($INMD), O’Reilly Automotive ($ORLY), Novo Nordisk ($NOVO-B), Mastercard ($MA)