Illinois Tool Works Inc.

“ITW is a structurally superior industrial compounder with a wide and durable moat, ~28% operating margins, and an exceptional capital return record — but three consecutive years of near-zero organic growth, a leveraged balance sheet with negative tangible equity, and a 23x trailing earnings multiple leave essentially no margin of safety at $247; expected annualized total returns of 6–7% are market-like at best, making this a high-quality business to own at the right price, not at today's price.”