🇦🇺 Searching for compounders in Australia (Part 2)

Starting point

Quality investing is comparative. We only know a company is a quality company when we compare it to every other company. This involves not just comparing a company to its peers, competitors, suppliers and customers, but also comparing it to companies nothing like it. Through systematic comparison can we find the truly exceptional companies that deservedly float to the top.

That's the point of this project, which aims to find the best 2-3 companies in each country. Part 1 was Sweden (read it here). Now for Part 2 we're going to head to Australia.

There are currently 1,929 companies listed on the Australian Securities Exchange (ASX). You can find the full list here. In preparing this report I analysed the share price linearity and quality growth metrics of every single one.

In terms of its economy, Australia is resource-rich and therefore its exports are primarily mining, agriculture, and manufacturing, with a mix of services. Therefore, there's a fair number of Australian companies here with commodity exposure, e.g. iron ore, coal, natural gas and gold. Key industries in Australia include mining, financial services, healthcare and tourism. There's also a growing focus on technology and renewable energy. Australia’s largest trading partners are China, Japan, the United States, South Korea, and the European Union, with China being its dominant export market.

Let's get started.