A Few More Green Screen Tweaks

main image

I've been slowly tweaking the Green Screen lately to try and provide a good balance of available stocks and an array of industries.

The first round of changes was detailed about a month ago. This was a good first step, focusing our investment lens towards growth with an eye on free cash generation. It also exposed us to some smaller companies, and filtered out some industries that are hard to measure with the metrics we use (banks, insurance companies, etc.)

Today I'm rolling out a few more changes to it to "widen the net" a bit and get back some of the value we had with the old "Tortoise" screen.

There are now 3 "tiers" of stock that will be screened, instead of just the single "over 20% revenue growth and free cash flow positive" that was the sole criteria before.

Stocks with over 25% revenue growth next year and free cash flow positive. These are very rapidly growing firms that have reached free cash profitability, even if just barely so.

Stocks with over 20% growth and 5% or higher free cash flow return on invested capital (ROIC). A bit less (but still very good) growth, with a higher bar for cash profitability.

Stocks with over 15% growth and FCF ROIC over 10%. Requires a bit more profit maturity for the lower growth hurdle.

As a result of these changes, I feel we have a much more well-rounded (and larger) "universe" of stocks to consider, while still staying true to the core concept of "cash profitable growth" that forms the baseline of our investing thesis.

Looking forward to combing these screens to find the next great investment opportunity for us!

Watch List

APPF 2.41%
S 11.12%
NTNX 33.50%
CRWD 108.68%
SEMR 16.62%
SNOW 28.44%
SE 79.50%

Buy List

TSM -25.61%
GOOG -42.57%
NYAX -44.17%
HRMY -48.69%
YOU -54.31%
MELI -27.28%
ADBE -29.83%

Hold List

ZETA -8.41%
MSFT -24.20%
ODD -23.18%
ASR -24.82%
FLYW -2.65%
CELH -20.22%
TOST 34.20%
CPNG 6.94%
HIMS 137.18%
PAYC -22.88%
MNDY 33.34%
GLBE 1.37%
ZS 30.99%
V -2.91%
ADSK 9.00%
NOW 16.91%
ABNB -12.75%
FTNT 11.97%
TEAM 30.92%