🇸🇪 Searching for compounders in Sweden (Part 1)

It's important to have peace of mind when investing.

Running a concentrated portfolio can be seen as being counter to that, given the potentially thousands of great and yet uninvested in companies that may have been overlooked.

That's why concentrated quality investing requires sifting through and filtering out 1000s of companies, so that you can have the peace of mind that you've picked and only invested in the very best.

This report is Part 1 of what will hopefully be a multiple part series of research looking to identify the very best opportunities from each country. Hopefully this report unearths some names that you possibly haven't encountered before.

The aim is to identify the highest quality compounders from each country, and in doing so, hopefully find at least one new company from each to add to the Global Compounders Database. And who knows, maybe one day we may see the companies investigated here graduate into the Investable Universe or even the Portfolio.

This time we're starting with Sweden - a country known for its serial acquirers (like Lifco and Teqnion) and its big tech names (like Spotify and Evolution).

To start the research I began by asking Twitter what Swedish equities currently stand out. There were 54 responses in total. The names that repeatedly came up were: Addtech, Assa Abloy, Atlas Copco, Evolution, Fortnox, Hemnet, Hexagon, Investor AB, Lagercrantz, Lifco and Teqnion.

I currently don't have any Swedish companies in the portfolio. But the Swedish names that I currently follow closely are Fortnox, HMS Networks, Addtech and Lagercrantz.

I also took a look at the MSCI World Quality index. The Swedish companies considered quality by MSCI are Atlas Copco, Boliden, Epiroc, Evolution and Investor.

Let's get started.