5-Tool Companies
Companies like $BAM, $CNSWF, and $TMO are great examples of 5-tool companies. What are 5-tool companies?

What are the five tools:

🏰 Moat
⚖️ Long-runway or scale
🏢 Great management
🪙 Fantastic Capital allocators
💰 Strong balance sheet

A 5-tool biz is not always the best, but tend to produce superior returns.

What are some of your favorite 5-tool companies?
Christian's avatar
Hmmm what a question, everything I own lol. If I had to choose one definitely Starbucks
Heavy Moat Investments's avatar
Own $CNSWF, I'd switch $TMO for $DHR (both great though) and I'd add $TXN, $RICK, $VEEV, $ADYEN and a bunch of others I have in my portfolio :D
Dave Ahern's avatar
@stonkmetal all great choices! I’d add $V and $BRKB too. Big fan of $ADYEY, gotta love Pieter and team.
Heavy Moat Investments's avatar
@ifb_podcast I just started my Adyen position yesterday actually. I'll share some thoughts on my new investment on here later!
Christian's avatar
@ifb_podcast id add V too 😉. Sleeper pick I have to add is Fiserv, I’m convinced they will make me a millionaire
Joey Hirendernath's avatar
I would say $LULU and $SBUX for me but I would caution with 2 tools - *good management and good Capital allocators.
Christian's avatar
@joeyhirendernath yeah idk if LULU are good capital allocators yet same goes for good management. Starbucks I definitely think they good capital allocators it’s the new management that has to earn it