MSCI - The Compound King: How MSCI Can Grow Your Wealth Exponentially

2024-05-26 16:22:14 ET

Summary

• Morgan Stanley identifies wealth compounders as stocks with strong franchise durability, high cash flow generation, low capital intensity, and minimal financial leverage.
• MSCI Inc. is one of the best compounders, with a 19.5% annual return since its spin-off from Morgan Stanley in 2007.
• MSCI offers a range of services in global markets, including indexes, portfolio construction and risk management tools, ESG and climate solutions, and private asset data and analysis.

Introduction

What's a wealth compounder?

According to Morgan Stanley, it's a very specific kind of stock with tremendous return potential.

Our research shows that these ”compounders,” which exhibit characteristics such as strong franchise durability, high cash flow generation, low capital intensity and minimal financial leverage , have generated superior risk-adjusted returns across the economic cycle . - Morgan Stanley (emphasis added)

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