CAPITAL RETURNS · INCEPTION
Cannibals.
When the business buys more of itself.
Mature, durable tech businesses that generate real cash and reduce the share count after dilution.
01 / THE LIVE MODEL RECORD
What happened to a model $100?
Both lines start at $100 on . The last point is the snapshot.
SPY’s adjusted close moved from $770.57 to $763.99. New entrants receive an equal dollar allocation funded by a model deposit at the prevailing NAV. Unitized NAV keeps those deposits out of the return calculation; holdings are kept for a three-year horizon even when they later leave the screen.
02 / THE IDEA
Why this portfolio exists.
The question is whether a strong business can keep growing while handing excess cash back to owners. A repurchase helps each remaining share only when the business produces cash, the share count actually shrinks, and the price paid makes sense.
03 / HISTORICAL CONTEXT
What the screen found in the past.
This earlier research test studied stocks that met a related version of the screen, bought at the qualifying point and held for three years. Some gates differ from today’s rules; the results are separate from the live portfolio plotted above.
The test uses historical point-in-time, delisted-inclusive research data. These figures describe average individual stock outcomes, including overlapping three-year windows; they are neither the return of an investable portfolio nor a forecast. The live comparison above uses SPY; this historical comparison uses the broader tech universe. The exact current screen gates appear below.
04 / THE DATED HOLDINGS
Every entry has a date.
21 names pass the screen; 3 remain held after leaving it. Prices are through .
| Company | Added | Current screen | Entry price | Last close | Weight | Since entry |
|---|---|---|---|---|---|---|
| AAPL company storyApple Inc. | Qualifies | $304.91 | $330.32 | 4.6% | +8.3% | |
| ADBE company storyAdobe Inc. | Qualifies | $264.74 | $241.28 | 3.9% | −8.9% | |
| ADPAutomatic Data Processing | Held after exit | $271.09 | $263.96 | 4.1% | −2.6% | |
| CHKPCheck Point Software Technologies | Qualifies | $129.12 | $130.73 | 4.3% | +1.2% | |
| CRUSCirrus Logic, Inc. | Qualifies | $121.99 | $120.17 | 4.2% | −1.5% | |
| CSCOCisco Systems, Inc. | Qualifies | $107.44 | $108.34 | 4.3% | +0.8% | |
| DOCSDoximity, Inc. | Qualifies | $26.54 | $28.50 | 4.6% | +7.4% | |
| FFIVF5, Inc. | Qualifies | $414.00 | $443.68 | 4.5% | +7.2% | |
| FICOFair Isaac Corporation | Qualifies | $1038.23 | $661.75 | 2.7% | −36.3% | |
| IDXXIDEXX Laboratories, Inc. | Qualifies | $552.91 | $517.75 | 4.0% | −6.4% | |
| KLACKLA Corporation | Qualifies | $200.47 | $200.33 | 4.2% | −0.1% | |
| KSPIKaspi.kz | Qualifies | $95.36 | $92.02 | 4.1% | −3.5% | |
| MAMastercard Incorporated | Qualifies | $590.63 | $550.00 | 4.0% | −6.9% | |
| MANHManhattan Associates, Inc. | Qualifies | $195.20 | $204.15 | 4.4% | +4.6% | |
| MCOMoody's Corporation | Qualifies | $502.23 | $447.36 | 3.8% | −10.9% | |
| METAMeta Platforms | Held after exit | $599.12 | $725.93 | 5.1% | +21.2% | |
| MSCIMSCI Inc. | Qualifies | $571.53 | $545.39 | 4.0% | −4.6% | |
| MSIMotorola Solutions, Inc. | Qualifies | $466.86 | $448.03 | 4.1% | −4.0% | |
| NTAPNetApp, Inc. | Qualifies | $198.47 | $215.05 | 4.6% | +8.4% | |
| PCTYPaylocity | Qualifies | $144.20 | $146.60 | 4.3% | +1.7% | |
| QLYSQualys, Inc. | Qualifies | $188.31 | $187.43 | 4.2% | −0.5% | |
| RELXRELX | Held after exit | $35.37 | $33.49 | 4.0% | −5.3% | |
| VVisa Inc. | Qualifies | $380.00 | $359.85 | 4.0% | −5.3% | |
| VRSKVerisk Analytics, Inc. | Qualifies | $180.97 | $168.38 | 3.9% | −7.0% |
No holdings match this filter.
“Since entry” compares each stock’s dividend-adjusted closing price with its originally logged entry price; it is not the portfolio return. Entry prices were indicative model prices, not verified trade fills. Weights reflect the dated model snapshot. A name leaving the screen remains in the cohort under the three-year hold rule.
THE SCREEN, IN DETAIL
What has to be true?
The current rule set is recorded with the screen. A pass starts the research process; it is not a conclusion about the stock.
- ROIC > 18%; historical minimum > 10%
- Gross margin > 40%; owner FCF margin > 12%
- 3-year revenue growth > 2%; gross-profit growth > 3%
- Owner Rule of 40 > 25%
- Shares shrink > 0.5% a year; net buyback yield > 0.5%
- EV / gross profit < 40×
- Net debt / EBITDA < 3.5×; Altman Z > 1.8
- Beneish < −1.78, or unavailable
KEEP FOLLOWING THE RESEARCH
The numbers lead back to the business.
These dated, hypothetical model results and historical tests are for independent research, not personalized investment advice or client account performance.