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Hi Partner 👋
Welcome to the third edition of our 10 Stocks for the next 20 Years series.
You already received two parts:
Today it’s time for Arka’s selection.
Let’s dive in right away!
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Built to last
At first glance, this challenge sounds very simple.
Just find 10 great companies and hold them for the next 20 years.
But history tells something different.
Do you remember the 20 biggest companies 20 years ago?
Here they are:
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A lot of these are probably very familiar names.
But how many do you think are still in the top 20 today?
Here’s the list as of today:
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The number of companies that made both lists?
Only 6 (!):
Microsoft
Walmart
Intel
Exxon Mobil
Johnson & Johnson
Cisco Systems
Companies like Coca-Cola and Home Depot are still exceptional businesses today.
However, they no longer make the list.
Something sets these six companies apart.
They have shown the resilience to weather the challenges of the past two decades.
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So what do these companies have in common?
It’s not a single factor, it’s a combination of:
A strong moat
Strong management
Healthy balance sheet
Excellent capital allocation