Investing in Global Dominators: Numbers

Published on 01/11/19 | Saurav Sen | 929 Words

The BuyGist:

  • This is a numerical follow-up to Investing in Global Dominators.
  • We start with a list of 25 Global Dominators. 
  • We end up with 4-5 candidates worthy of further analysis based on these criteria: High ROE, Low Debt and/or positive potential upside based on current market prices.

Why this article?

This worldview is short. Earlier this week, I published a worldview on Investing in Global Dominators. I had a list of dominators that met all of these conditions: 

  1. Who are the biggest investable companies in the world?
  2. Do they have limited competition – just 1 or 2 competitors?
  3. Do I think that the threat from the startup ecosystem is very low.

I explained possible reasons why these companies have dominated and why they can keep competition and those pesky upstarts at bay. This worldview is a numerical representation of Investing in Global Dominators. I’ll look at whether bigger companies have been doing better. And among the big dominators I had listed, are any of them worth a closer look?

The trigger for the previous worldview on Global Dominators was the recent market correction since October 2018. Global Dominators are rarely cheap. But after violent market corrections like the one we saw in 2018, it’s worth checking out if some of these 800-pound gorillas are good deals.

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