GE Aerospace

“GE Aerospace is one of the highest-quality industrial businesses globally — a structurally advantaged, capital-light annuity engine with a multi-decade compounding runway, excellent management, and an accelerating FCF trajectory. The sole disqualifier is valuation: at 44x trailing and 41x forward earnings near an all-time high, the stock prices in near-perfection with no margin of safety, limiting 10-year returns to a probable 2-3x (~10-12% CAGR) rather than the asymmetric outcome that justifies concentration. The business does not need to fail — it simply needs to be slightly less perfect than priced for returns to disappoint.”