Outperform the Market with
Quality Investing
Our Investment Philosophy
There are 50,000+ public companies, but we only invest in the 0.1% strongest ones
The strongest companies have a durable moat
A moat is a sustainable competitive advantage that protects a business from competitors. Companies with a wide moat can maintain high returns on capital, defend their market position, and grow consistently over time. Examples of moats include strong brands, network effects, high switching costs, proprietary technology, and unique distribution channels. Investing in businesses with a durable moat increases the likelihood of long-term success and resilience through market cycles.
We also look for quality companies with the following criteria:
Pricing Power
Pricing power is a company's ability to raise prices without losing customers. This trait is often found in businesses with unique products, strong brands, or limited competition. Companies with pricing power can protect and expand their profit margins, making them more resilient to inflation and market pressures.
Boring Predictability
Predictability refers to the consistency and reliability of a company's growth in revenue and cash flow. Businesses with predictable results are easier to value and less likely to surprise investors with negative news. We favor companies with recurring revenue, stable demand, and a track record of steady performance.
Financial Fortresses
Financial strength means having a solid balance sheet, low debt, and plenty of cash. Strong companies can survive economic downturns, invest in growth opportunities, and avoid being forced into unfavorable decisions. We avoid businesses at risk of financial distress or bankruptcy.
Exemplary Capital Allocation
Capital allocation is how management invests the company's profits—whether reinvesting in the business, buying back shares, or paying dividends. Great capital allocators maximize long-term value for shareholders by making disciplined, high-return decisions. We look for leaders who are thoughtful and effective stewards of capital.
World-Class Management
Strong management teams are essential for long-term success. We seek companies led by experienced, ethical leaders (often founders or owner-CEOs) who have a track record of smart decisions and alignment with shareholders. Their vision and discipline can make the difference in navigating challenges and seizing opportunities.
Instantly spot the world’s strongest companies using Beanvest Quality Score
After this in-depth analysis, we calculate a Quality Score for each company, helping you easily compare and identify the stronger companies in the world.
Here are the most recent companies we've studied
Why is our Quality Score different?
Most stock screeners focus only on quantitative data like financial ratios and growth rates.
Beanvest goes deeper by doing qualitative analysis to uncover the best companies, including overlooked hidden gems that numbers alone might miss.
Once we've identified the best companies in the world, we look at their valuation
We buy them at a fair price
Even the best business can be a poor investment if bought at the wrong price. We assess valuation using simple, proven metrics like free cash flow yield and margin of safety. Our goal is to buy great companies at fair or attractive prices, avoiding overpaying even for quality.
