Our Top 10 holdings, are our favourite companies.
They typically have a wide moat, and are likely to earn excess profits over the long run. They have all scored very highly in our factor based selection methodology.
(Note these are not investment recommendations)
Adobe provides content creation, document management, digital marketing and advertising software and services to creative professionals and marketers. The company operates with three segments: digital media content creation, digital experience for marketing solutions, and publishing for legacy products.
Alphabet is a holding company, with Google, the Internet media giant, as a wholly owned subsidiary. Google generates 99% of Alphabet revenue, of which more than 85% is from online ads. Google’s other revenue is from sales of apps and content on Google Play and YouTube, as well as cloud service fees and other licensing revenue. Sales of hardware such as Chromebooks, the Pixel smartphone, and smart homes products, which include Nest and Google Home, also contribute to other revenue. Alphabet’s operating margin has historically been 25%-30%, with Google at 30%.
Games Workshop designs, manufactures and sells fantasy miniatures and games related products through its chain of more than 530 stores, catalogues and website, as well as around 5,000 independent retailers in more than 70 countries. It has partnered with Nexon to extent its creative excellence to a virtual world for PC, consoles and mobile platforms.
Lowe's is an American retail company specializing in home improvement. It serves approximately 20 million customers a week in the United States and Canada. Lowe’s and its related businesses operate or service more than 2,200 home improvement and hardware stores and employ over 300,000 associates. Its online presence has recently seen triple digit sales growth.
Meta Platforms is the new name for Facebook. It is the world’s largest online social network, with 2.5 billion monthly active users. On the video side, the firm is in the process of building a library of premium content and monetizing it via ads or subscription revenue. The firm’s ecosystem consists mainly of the Facebook app, Instagram, Messenger, WhatsApp, and many features surrounding these products. Advertising revenue represents more than 90% of the firm’s total revenue, with 50% coming from the U.S. and Canada and 25% from Europe. With gross margins above 80%, Meta Platforms operates at a 30%-plus margin.
Microsoft develops and licenses consumer and enterprise software. It is known for its Windows operating systems and Office productivity suite.
The company is organized into three overarching segments: Productivity and Business Processes, Intelligence Cloud, and Personal Computing. Through acquisitions, Microsoft owns Xamarin, LinkedIn, and GitHub.
A global healthcare company with 90 years of innovation and leadership in diabetes care, it has almost 50% market share by volume of the global insulin market. The company also has leading positions within haemophilia care, growth hormone therapy and hormone replacement therapy.
Company: Regeneron Pharmaceuticals Inc
Market Cap: $31bn
Purchased: November 2021
Regeneron Pharmaceuticals discovers and develops products for the treatment of cancer, cardiovascular disease, inflammation and eye disease. Regeneron’s well executed antibody cocktail (REGEN-COV) cut the risk of contracting Covid-19 by 82% for up to eight months, and provided a short term windfall on top its well-positioned core drivers and broad pipeline.
Company: Taiwan Semiconductor
Sector: Information Technology
Market Cap: $486bn
Purchased: March 2021
Taiwan Semiconductor is the worlds largest semiconductor manufacturing and design company which has maintained an over 50% share of the global market since the early 2000s. It has around 65,000 employees and was the first Taiwanese company to be listed on the New York Stock Exchange.