We asked our Foolish analysts to pick their favorite Rule Maker, and the results were surprising. While some of the usual suspects like Coca-Cola and Cisco did make the list, newcomers MGM Mirage (NYSE: MGM ) and First Data (NYSE: FDC ) emerged as leaders in their respective industries. Google (Nasdaq: GOOG ) , once a quintessential Rule Breaker, now apparently makes the rules in Internet search and advertising.
Perhaps the biggest surprise is who didn't make the list. No one supported perennial powerhouses Dell (NYSE: DELL ) , Intel (Nasdaq: INTC ) , and Microsoft (Nasdaq: MSFT ) . Are these stalwarts losing their lead over their competitors? This chart suggests that may be the case.
For those new to the game, here's what we look for in a quality Rule Maker company:
- Strong, well-known brands.
- Mass-market products or services that are purchased repeatedly.
- High margins and sales growth.
- Strong balance sheet and low debt.
- Discounted stock price.
- Expanding possibilities.
These traits lead us to companies with sustainable competitive advantages and high returns on capital, providing us (hopefully) with long-term outperformance. Read the arguments below to determine which company is the best Rule Maker.
Coca-Cola, Dell, First Data, Intel, and Microsoft are Motley Fool Inside Value recommendations. Discover more Rule Maker stock ideas with a free 30-day trial subscription.
Dell and Disney are Stock Advisor recommendations.