A Quality Executive Compensation Plan Lowers The Risk Of Investing In Humana

Recap from July Picks

The Exec Comp Aligned with ROIC Model Portfolio (+4.4%) outperformed the S&P 500 (-0.3%) from July 14, 2023 through August 14, 2023. The best performing stock in the portfolio was up 25%. Overall, 9 out of the 15 Exec Comp Aligned with ROIC Stocks outperformed the S&P from July 14, 2023 through August 14, 2023.

This Model Portfolio only includes stocks that earn an attractive or very attractive rating and align executive compensation with improving ROIC. I think this combination provides a uniquely well-screened list of long ideas because return on invested capital (ROIC) is the primary driver of shareholder value creation.