Quality compounders are quality growth stocks able to compound shareholder value on a consistent basis. Unfortunately for investors, there are only very few of these companies. Yet, when looking at the characteristics of this exclusive group of outperformers, we find a number of interesting similarities.
The vast majority of these companies have valuable intangible assets, a long-term thinking management team focused on continuously improving their products and services and the ability to generate high and consistent returns. Other characteristics include a strong balance sheet and relatively low capital intensity.
The Robeco Global Consumer Trends strategy strives to uncover the precise companies that feature such characteristics. We believe that quality compounders offer the best way to generate superior long-term investment returns for our clients. To achieve this, we first focus on the trends that offer the highest growth potential and then identify the structural winners within these trends.