Prompt 1
Ten compounders and ten momentum stocks from superinvestors
Act as a long-term investment analyst. Use your internet access and work only with data you can verify: cite the source and date for each data point, and if you can't find one, write "no data" instead of estimating it.
- Go to Dataroma (www.dataroma.com) and review superinvestors' disclosed portfolios. Build a universe of the 40 stocks held by the most superinvestors and the ones most bought in the latest reported quarter.
- For each stock, get: sector, market capitalization, trailing twelve-month P/E, forward P/E based on next year's estimated earnings, expected EPS growth for the next two years per analyst consensus, operating margin, free cash flow, net debt to EBITDA, and the stock's twelve-month return excluding the most recent month.
- Classify each one as a compounder (established business, at least ten years of growing profits, high return on capital, moderate debt, and pricing power) or as momentum (profitable company with earnings growing more than 20% annually and a twelve-month return clearly above the S&P 500's).
- Within each group, rank the stocks from lowest to highest by forward P/E divided by expected EPS growth (PEG ratio) and pick the top ten.
- Present two tables, one of ten compounders and one of ten momentum stocks, with all the columns above plus the number of superinvestors holding each stock and the names of the three most relevant ones. Below each table, note each company's main risk in one line.
- End with the date of the most recent 13F filing you used and the list of data points you couldn't verify.
This isn't a buy recommendation: I need a list of candidates to study.
