This list of 50 stocks consistently beat the market for the past 20 years

Wednesday: The Independent Investor FROM THE DESK OF MILES EVERSON: QGV 50. This pertains to a list of 50 companies that exhibit three important characteristics in the investment sector: High quality, strong growth potential, and low valuations. If you’re an independent investor who’s looking for potential stocks to invest your money into, then this list will be of great help to you! The information you’ll get from the QGV 50 will surely help you make wise investment decisions in the future. Read on because we’ve highlighted the stock performance of one company in the list and find out the importance of keeping yourself updated with these kinds of lists. CEO, MBO Partners Chairman of the Advisory Board, The I Institute

This list of 50 stocks consistently beat the market for the past 20 years History has shown that the world’s greatest investors, past and present, understand the simple fact that as-reported financial metrics are unreliable. To be successful, they account for arbitrary accounting rules by adjusting the financials, providing a true picture of economic reality and allowing them to find companies that exhibit three characteristics: high quality, strong growth potential, and low valuations. Today, let’s take a look at the QGV 50, which emulates this investment strategy to produce outsized returns in excess of the market over long periods of time. Investors who get caught up only investing in the latest fad, be it cryptocurrency, clean energy, cybersecurity, or any number of other popular themes, often do so at their own expense. While there are always hidden gems in the midst of the hype, most investors find themselves staring down overvalued companies that have made some big promises. Without being able to separate the wheat from the chaff, investors often end up overpaying for name recognition. The world’s best investors don’t often spend their time picking out the most popular companies, but rather look for great names in sleepy areas that the market isn’t paying much attention to. From there, the goal is to then identify quality companies with significant growth potential at reasonable prices. That’s exactly what we’ve set out to do with the QGV 50, a list of 50 companies that rank at the top for quality, high growth, and low valuations. This list has outperformed the market by 300bps per year for over 20 years now, effectively doubling the performance of the market by focusing on the real fundamentals and valuations of companies with our proprietary Uniform Accounting framework. See for yourself below. To be clear, you can only see how powerful Uniform Accounting truly is by looking at the data, and one of this month’s top companies on the QGV 50, AmerisourceBergen (ABC), is a perfect example. AmerisourceBergen is a pharmaceutical distribution business, sourcing brand-name and generic drugs, over-the-counter healthcare products, and home healthcare supplies from manufacturers and sending them to hospitals, retail pharmacy chains, and many other customers. On top of the pharmaceutical distribution business, AmerisourceBergen also operates a small veterinarian distribution segment, making the combined enterprise a rather standard, easy-to-understand, and frankly boring business that is unlikely to excite investors. Looking at as-reported financial metrics, which suggest AmerisourceBergen generated a return on assets (“ROA”) of only 3% in 2020, well below average cost of capital levels in the U.S. at around 4.8%, investors would probably assume this pharmaceutical distributor isn’t just a boring company, it’s actually a bad business. In reality, Uniform Accounting metrics show that being a dominant distributor of vital healthcare products, along with churning through inventory that is bought and then sold immediately, actually makes for a fantastic business. This is especially true if you have the right scale, which AmerisourceBergen does by being one of the three biggest players in the space, along with McKesson (MCK) and Cardinal Health (CAH). Thanks to its strong operations, AmerisourceBergen actually generated a Uniform ROA of 85% in 2020, not the below cost of capital levels suggested by as-reported metrics. Moreover, the company has recently been re-investing in itself, growing its asset base almost 10% in 2019 and over 35% in 2020. With a Uniform price-to-earnings ratio (“P/E”) of just 16.5x, AmerisourceBergen trades well below market averages as well, making it a compelling name checking off all the boxes of quality, growth, and value. Finding great companies with growth potential trading at favorable prices shouldn’t be this easy, especially in the current market environment. Yet, with Uniform Accounting it is, and that’s why the QGV 50 has had such tremendous success beating the market over the years. To learn more about the QGV 50 and see the other 49 companies on the list, click here to get full access today. Hope you’ve found this week’s insights interesting and helpful. Follow us on LinkedIn. Stay tuned for next Wednesday’s The Independent Investor! Higher taxes raise the cost of the action and reduce the number of people who want to perform it. Learn more about how an upcoming tax bill could impact your portfolio on next week’s The Independent Investor!