FTSE 30 Index – Stock By Stock Analysis
FTSE 30 INDEX – Complete individual stock analysis (one by one)
When it comes to investing, I tend to agree with Charlie
Munger: “All you need in life is a few good investments”. That’s it.
However, the difficulty comes in finding a few great
investments, separating the good from the crowd and, the most difficult part,
buying big when the price is right. I believe that one can buy big when the
price is right if one knows:
- What is one’s expected investment return? If you
wish for investment returns of 10%, you need to find great businesses that
create at least 10% of their stock price in new value for the owners.
- What is a ‘great business’? For me, a great
business, is a business that has a competitive advantage, is likely to continue
to expand thanks to it, operates in a sector with positive structural tailwinds
and has a strong balance sheet that allows it to weather all kind of short-term
economic or other pressures.
- Where to look for great businesses that offer
double digit business yields? Well, if it would be easy to find them, everybody
would find them. Therefore, the only option is to go through long lists of
businesses, one by one. Fortunately, the above criteria quickly eliminate 99%
of the candidates so it actually isn’t an endless quest. All you need is a few.
With the above motto; ‘all I need is a few’, I will analyse
all the businesses included in the FTSE 30 Index, one by one, to find those
that might fit the above strict criteria. I am happy in finding a few good
businesses per year. I put those on my covered businesses list and closely
follow them. When their price gets to the right level, I buy. This makes
investing much easier in comparison to chasing various possible trades or
short-term benefits. In a world where most invest in index funds or quick
trades, nobody looks at the potential a business will have in 2025. This is our
advantage and therefore meticulous research is what can lead to extraordinary
returns over the long-term. Let’s start.
Numbers don’t tell the whole story when it comes to investing, but usually help. Therefore, here you have an excel file with the numbers for the 30 stocks, from return on equity to PE ratios alongside industry averages. Data is compiled from various sources and should be only used for indicative purposes.
DISCLAIMER: The opinions expressed – imperfect and often subject to change – are not intended nor should be taken as advice or guidance. The Sven Carlin Stock Market Research Platform is not an investment advisor or financial advisor. The Sven Carlin Stock Market Research Platform provides research, it does not advise. The information enclosed in this article is deemed to be accurate and reliable, but is not guaranteed by the author.