BusinessWeekkeeps a list of "the best companies in
the world." As it turns out, it's actually a list of the best
investmentsanywhere, and you can find some
great investment ideasthere.
This year's list looks at companies with above-average
sales growth over the last five years, at least $10 billion
of annual revenue, serious international sales, and five-year
stock returns above zero. I like
BusinessWeek's methods here, because the magazine
has essentially designed a screen that finds excellent
businesses for you with a record of
sustained growth.
And by these criteria, the best company in the world today
is
Nintendo (OTC: NTDOY).
Don't let the Pink Sheets designation fool you: Nintendo
is a serious investment and an official
Motley Fool Stock Advisorrecommendation. In the five
years it's had that designation, Nintendo
has crushed the market with 38% annual returns for a near
five-bagger return on investment. Riding high on the Wii and
DS gaming systems, Nintendo's sales have expanded by 36% a
year over the same time frame.
But
the ship may have sailed on that opportunity. After all,
investors have already been richly rewarded for Nintendo's
sales growth. Further down the list, you'll find a few
exceptional growth businesses whose stocks have been left
behind. Here's a sample of findings from
BusinessWeek's20 best companies in the world:
5-Year Value CAGR
5-Year Sales CAGR
Google (Nasdaq: GOOG)
9%
62%
Apple (Nasdaq: AAPL)
24%
41%
Nintendo
38%
36%
BHP Billiton (NYSE: BHP)
14%
29%
Amazon.com (Nasdaq: AMZN)
1% Continued... |