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2025

After an eventful two years, has my quality screen beaten the market?

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Two years ago I created a screen to look for potential quality compounders – those rare high-quality companies that can generate consistently high returns for many years, reinvesting their profits successfully and potentially delivering long runs of market-beating growth.
The intervening period has seen periods of elevated volatility and some unexpected events. In this piece I want to look at the performance of my original selection and consider how this might be improved.
A quality compounding approach to investing requires fairly long timeframes. Two years isn’t really enough to see the benefits of true compounding. But I think it is enough to check which stocks from my original list are still performing and to look for some new contenders to consider.
Compounding Quality screen revisited
Before we go any further, here are the links to my original article and to the compounding quality screen itself.
As a quick refresher, here’s a snapshot of the screening rules I used to try and identify companies with the potential to be quality compounders:

When I originally looked at this screen in May 2023, it generated 35 stocks.
At the time of writing (16...















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