July 2025 (Basic) Idea List

The full list of liquid companies in this month’s TOR (premium) is now 262 long. And our internal list including illiquid companies is almost 600 long. If our coverage were more comprehensive, I sense that these lists would more than double in length. My goal is to continue expanding our coverage as I also refine the lists more granularly over time.

During strong markets, it can be helpful to check for opportunities to buy insurance (e.g., S&P Puts) and for any pockets of new or ongoing weakness. Many such sectoral, geographic, and company-specific pockets provide interesting opportunities to research and learn today. And I keep hunting daily to expand the list further.

This month’s new additions include many industrial, alcoholic beverage, and FMCG companies in China and the US. They also include some institutionalized companies in weakening emerging markets including Thailand and Indonesia. Other additions, like Copart, represent more proven companies that tend to be expensive but are approaching the top end of a reasonable price range. And there are other additions like Lululemon, American Eagle, Robert Half, LKQ, Boston Beer, and CP All that are visiting recent or new lows.

The additions also include new discoveries for me like Herc Holdings for equipment rental, Morimatsu International for process equipment, Rorze for semi equipment, Wesco International for electrical components, and Shoals Technologies for solar equipment.

Within rising stars—less proven companies with potential for a long runway—I added a couple of health insurers in India, which are contenders within a long-term growing market where competitive dynamics remain unclear for now. There are also other companies related to Indian healthcare that are not yet on the list but could be over time or are too illiquid for now. Another health-related addition is Hims & Hers, which is impressive for its accomplishments to date, but still seeking firmer footing via greater loyalty from suppliers and consumers.

Below, you will find the companies lists by idea type, then the countries list, and then a guide to the columns and acronyms before the disclaimers. Feel free to also visit the About page on Substack to read our introductory thoughts.

Companies

This list of companies is sorted by idea type and market cap. There are many flaws to caveat with this list. Most notably, the scores do not indicate my confidence levels. Some of the companies on the list are old friends that I have known for a long time and therefore have high conviction in my scoring. Others, such as Wesco International for example, are recent acquaintances, and so my scores are more tentative. You may also notice other oddities such as Nippon Paint, which is included in the BA list (representing good business quality and resource allocation) despite its low ROE and weak RA score (resource allocation) relative to many other companies on the list. This is because I expect the Goh family’s control of Nippon (since early-2021) to have a gradually positive impact on its RA.

This list is also not meant to be comprehensive, and there are many other possible ideas that I have chosen to exclude. For example, the subset of China companies is not comprehensive given many readers are unable to invest in local companies there.

I further excluded many companies that operate in highly technical fields that I find harder to understand, such as semiconductors. Conversely, I have included many companies that I think are worthy of consideration based on their financials and valuations, but in which I am very unlikely to ever invest given my own predilections about the predictability and differentiation of the industries in which they operate, such as O&G services, mining (e.g., Coal India and Vale), or pharmaceuticals (e.g., Regeneron). That said, all of the companies I have included in this list are there because I believe I should be open to learning more about and researching them to some degree.

Great Business Quality and Resource Allocation (BA)

Great Business Quality (BQ)

Great Resource Allocation (RA)

Rising Stars (RS)

Countries & Industries

One of the primary benefits of being a global investor is that there is almost always a bear market in some corner of the world, whether it's an industry or country. My approach is to look carefully at such markets for high quality assets that may qualify as long-term keepers. Therefore, I highlight these markets below, sorted by country GDP, as hunting grounds for potential long-term ideas, whether in specific stocks or other instruments.

In the future, we will share other lists, including industries and specific indices such as Taiwan electrical companies, small caps, etc. Today there appear to be multiple areas with the potential for good investment ideas, including in SE Asia, US housing-related companies, miners, managed care providers, developed world and Chinese alcoholic beverages and certain luxury products companies, IT services & distributors, eastern European countries including Kazakhstan, other small countries including Mauritius and Korea

Guide to Columns & Acronyms

The following is a guide to each column in the list beyond company details and financial metrics.

ROE is for last fiscal year, which differs by company. All stock price related information is as of June 30, 2025. Dividend yield is based on the last twelve months of dividends. All financial metrics are on a best efforts basis. Sources include company filings, Bloomberg, Koyfin, and our internal research based on other sources.

IDEA TYPES:

BA = Great Business Quality & Resource Allocation

BQ = Great Business Quality

RA = Great Resource Allocation

RS = Rising Stars

Asterisk (*) = indicates new addition from last month’s issue

SCORE TYPES:

B (Business Quality) = A high score (dark green) means that I believe that the business is so good that it can maintain and grow earnings and cash flows even if it is poorly managed.

A (Allocation) = A high score (dark green) means that I believe that the current management shows evidence of being an excellent allocator of human and financial capital and other resources of the company.

O (Ownership) = A high score (dark green) means that I believe ownership and management are well aligned to serve the best interests of both the company and all of its owners.

R (Runway) = A high score (dark green) means that I believe that the company could conceivably grow to multiples of its current size if it manages its resources well.

V (Valuation) = A high score (dark green) means that I believe it is currently trading at a very good price.

S (Special) = A high score (dark green) means that I believe the company is very unique and would be difficult for anyone else to copy or replicate.

G (Global) = A high score (dark green) means that I believe the company to be global both geographically and in other forms including the diversity of customer types it serves.

SCORE GRADATION:

From Dark Green (Excellent) to Dark Pink (Poor)

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