This article was co-authored with Kingdom Capital.
Background
Due to the recent turmoil in the markets, protection of investment capital has become more important than ever. We monitor the 40 or so highest-quality US public companies in terms of return on assets, consistent growth of free cash flow and balance sheet strength, waiting for opportunity.
One of the high-quality companies we track is approaching the pricing level ($158 per share) that has historically generated returns in excess of twenty percent per annum. Lennox International (LII) is an industry leader in HVAC systems, providing