I've spent the best part of a decade looking at the UK market and have almost given up. The reasons are well rehearsed so I won't go into them again.
Stockopedia does cover US stocks and it is well worth looking at some of the simple data for US companies. I've made a very simple screen just focussing on companies with a Sales CAGR of over 30% for 3 years, a market cap above $1billion and in the technology sector. These are the fastest growing companies in the fastest growing sector. There were 56 results: this is the first page. This is the screen sorted by CAGR.
And then the same screen sorted by YTD returns on the share price.
It is important to highlight that these are all large, very liquid companies. If you want to trade or spread bet them, the costs of doing so are marginal. Some of them are going to be the household names of the future.
I have done a similar but less selective screen for UK stocks: sales CAGR above 30% a year for 3 years, market cap above £200m and positive SP over 12 months. This is what comes back.
A total of 18 results, and 3 of the first 4 are collective vehicles where the figures on CAGR may not be very dependable.
There will of course be market cycles, and there will be a time when beaten up insurers and housebuilders do well. However, I can't help feeling that over any sensible timescale the US companies are the ones that you want to be invested in. And that is before you consider the liquidity of the US market: if you want to trade in and out you can do so at marginal cost and with minimal spreads.
Coming back to Stockopedia after a spell away and reading the message boards I am surprised at how much focus there is on the UK market. Yes, the US market is expensive. But companies growing at 50% a year always will be. These are companies providing global services in high growth areas. Perhaps they are all in a massive bubble. But as PIs don't we have the advantage of being able to sell quickly if the markets turn over?
Finally, remember that the US…
