Compounders…they’re a rare breed. Even rarer is a compounder at a cheap price. Below I’ve created the following screen to make things a little easier for you.
It’s a simple screen. All I’ve done is compile companies which have grown free cash flow by a minimum of eight periods out of an 11-year stretch. I also made sure each business had an average return on invested capital of 20% or above over the same period.
At a glance, you can see there are some pretty big names in there. Apple, Inc. (NASDAQ:APPL), Priceline Group Inc. (NASDAQ:PCLN) and Moody’s Corp (NYSE:MCO) to name a few.