Wonderful Businesses has expanded its coverage over the past months as more companies have achieved the “Big Five” moat numbers to be included in our publication. But not only has the number of Rule #1 businesses expanded which has given investors more options, but the overall strength of the collection of businesses has risen. Consider these statistics:

When we released our first issue of 2011, there were 26 Rule #1 members, 16 of which were undervalued. To make the top ten among Rule #1′s in return on investment, a member needed a return of 20.6%. To make the top ten in equity growth rate, 24.8% was needed. And to make the best of the best of analyst projected growth, 21% was needed with only 4 members expected to grow earnings over 22% annually over the next five years.

Contrast these figures with just a half year later. We now provide coverage on 36 businesses, 19 of which are undervalued. To make the top ten in ROIC, a member needs a return of 25.9%. Equity growth rate must be over 30%. And now nine Rule #1′s are projected by analysts to grow at an annual rate of 22%.

Since the market crash, this has been the best time to be a Rule #1 investor. There are now more options, more bargains, and more sector diversity, and most importantly, these businesses have poised themselves for explosive future growth.

Posted in Rule #1 Centered
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