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URL:  https://boards.fool.com/canadian-stocks-that-compound-capital-32684420.aspx

Subject:  Canadian Stocks that Compound Capital Date:  4/21/2017  2:17 PM
Author:  Gordogato Number:  5164 of 5166

Financial author and Canadian investor Robin Speziale lists out what he feels are the top 25 Canadian capital compounders:

My Talk at the Fairfax Financial Holdings Shareholder's Dinner: Capital Compounders - 25 Market Beating Stocks
https://www.linkedin.com/pulse/my-talk-fairfax-financial-hol...

I’m a growth investor. Growth at a Reasonable Price. Which means that I’ll invest in a company trading at 30 P/E if its EPS growth rate is 30% or greater, for example. I say this because most so called “value investors” would just balk at that 30 P/E and move on. And I especially love finding capital compounders; those stocks in the small-cap and mid-cap space that eventually grow into large-caps, on the foundation of their exceptional wealth creating ability, fueled by expanding book value per share, earnings per share, and free cash flow per share. [...]

To the average stock picker, not all of these 25 companies will be known, but their returns, nonetheless, have been market-beating, all compounding at rates higher than the S&P/TSX’s long term 9.8% compound annual return. The average compound annual return among these 25 stocks is 26%. With a range from 10.3% (Logistec) to 82.4% (CRH Medical). And these figures don’t even include dividends; just capital appreciation. I like to think that there’s a strong correlation in the long run between a company's return on capital and its share price performance. The average ROIC of these 25 capital compounder stocks is 16% (that’s a 5 year average). [...]



Mike
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