Every month, the Financial X-Ray evaluates more than 800 listed businesses using the same systematic framework. Only a small fraction qualify for the Financial X-Ray Selection – the portfolio that has outperformed the MSCI World since its inception, not because it chases the latest winners, but because it patiently waits for quality, financial strength and valuation to align.
The philosophy of the Financial X-Ray selection is simple: Strong businesses outperform when bought at the right price. 3 years is not 20 years and past performance does not guarantee future returns but the chart above shows that this framework deserves attention.
Today, the Selection consists of a concentrated group of 38 businesses that continue to clear a demanding set of financial hurdles. Portfolio turnover remains intentionally low. Great businesses rarely change overnight, and neither should a disciplined investment process.
That naturally raises an interesting question.
If I had fresh capital to deploy today, would I still buy the companies already sitting in the portfolio?
The answer isn’t automatically yes.
Some businesses remain exceptional but have become too expensive. Others continue to execute well, yet no longer offer an attractive balance between quality and price. Occasionally, however, the framework identifies companies where the market’s expectations appear to have drifted too far from business reality.
This month, two companies stood out.
They operate in completely different industries, face very different risks and serve entirely different customers. Yet both currently earn a place in the Financial X-Ray Selection for the same underlying reason.
Behind the paywall, I’ll explain why they still deserve fresh capital today – and what they reveal about how the Financial X-Ray separates great businesses from great investments.
As a paid subscriber you’ll get access to
weekly portfolio discussions and fresh ideas
the entire X-Ray selection that has performed exceptionally well
the X-Ray platform covering 800+ stocks in detail,
a portfolio roast function for your selection
Ability to request stocks to be covered and uploaded to the platform
