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11 High Quality Large Caps

My High Quality Large Cap screen has delivered a better-than sixfold return over the past 10 years while traversing the Covid market meltdown better than the wider market
September 14, 2021
  • Quality has had a great 10-year run
  • Valuations are not what they used to be in this part of the market
  • 11 new high-quality large-caps

What a great decade it has been to be an investor in quality larger companies. That’s even true for UK-focused investors despite the fact that our home shores are not seen as a natural hunting ground for such stocks. A case in point is my high-quality, large-cap screen. It boasts a 520 per cent cumulative total return since I started to follow it 10 years ago. That compares with 121 per cent from the FTSE All-Share. If I factor in an annual charge of 1.25 per cent the screen’s return drops to 447 per cent.

What’s more, unlike some of the other heavy-hitting screens I run in these pages, it has achieved the knockout record without any major upsets. Indeed, during the 10 years the worst peak-to-trough fall experienced was 26 per cent when markets went into their Covid-induced meltdown in March 2020. That compares with the FTSE All-Share’s 35 per cent decline in the same period.

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