Long-term investing success rarely comes from chasing headlines or timing short-term market moves. Instead, history shows that companies capable of consistently growing revenue, expanding margins, and generating strong returns on capital tend to create extraordinary shareholder value over time. These are the businesses that compound quietly in the background and, over years or decades, dramatically outperform the broader market.
There is a powerful link between durable earnings growth and market-beating returns. Investors who identify companies executing well across multiple cycles often benefit from compounding that can turn solid investments into standout winners. With that principle in mind, here are three stocks with proven track records, strong fundamentals, and meaningful room to keep growing.
Amphenol (APH)
Five-Year Return: +364%
Amphenol has spent more than nine decades quietly becoming one of the most important enablers of modern technology. The company designs and manufactures connectors, sensors, cables, and interconnect systems used across industries ranging from cloud computing and mobile devices to automotive, aerospace, and industrial automation.
What makes Amphenol stand out is not just its broad exposure, but how efficiently it converts growth into profits.
Why Amphenol Remains a Compelling Long-Term Buy
- Exceptional revenue momentum: Sales have grown nearly 30% annually over the past two years, signaling rising market share in high-demand end markets such as data centers and advanced electronics.
- Highly profitable growth: Earnings per share have grown even faster than revenue, reflecting strong operating leverage and disciplined cost management.
- Robust cash generation: With a free cash flow margin near 15%, Amphenol has flexibility to invest, acquire, and return capital to shareholders.
Trading at a premium valuation, Amphenol reflects its quality. For long-term investors, that premium is justified by the company’s consistency, resilience, and ability to thrive regardless of economic cycles.
Kinsale Capital Group (KNSL)
Five-Year Return: +108%
Kinsale Capital Group operates in a niche that many insurers avoid: hard-to-place and specialty risks. Founded during the aftermath of the global financial crisis, Kinsale built its business around underwriting discipline, speed, and data-driven pricing — a combination that has paid off handsomely.
Rather than chasing volume, Kinsale focuses on profitability and return on equity, making it a standout in the insurance space.
Why Kinsale’s Business Model Keeps Winning
- Strong premium growth: Net premiums earned have grown at nearly 24% annually over the last two years, highlighting continued penetration in specialty insurance markets.
- Exceptional book value expansion: Book value per share has surged at an impressive pace, showing efficient capital compounding.
- Clean balance sheet and underwriting discipline: This allows the company to grow without sacrificing financial stability.
At a modest multiple of book value relative to its growth rate, Kinsale remains well-positioned for investors seeking high-quality financial compounding with lower economic sensitivity.
Chubb (CB)
Five-Year Return: +91.2%
Chubb represents a different kind of market-beater: a global insurance leader combining scale, underwriting expertise, and disciplined capital returns. Operating across property and casualty insurance, reinsurance, and life insurance, Chubb benefits from diversification across geographies and customer segments.
Unlike many mature financial firms, Chubb has consistently delivered above-market growth while returning capital to shareholders.
Why Chubb Continues to Reward Long-Term Investors
- Steady premium growth: Net premiums earned have grown faster than industry averages, reflecting strong customer demand and pricing power.
- Improving efficiency: Underwriting profitability has strengthened as Chubb leverages its global scale.
- Shareholder-friendly strategy: Ongoing share repurchases have amplified earnings per share growth beyond revenue gains.
With a reasonable valuation relative to book value and a proven ability to perform across economic environments, Chubb offers defensive strength with attractive long-term upside.
Conclusion
Market-beating stocks rarely emerge overnight. They are built through consistent execution, disciplined capital allocation, and the ability to grow profitably over time. Amphenol, Kinsale Capital Group, and Chubb each represent different industries, yet share the same core traits: durable competitive advantages, strong financial performance, and management teams focused on long-term value creation.
For investors with patience and a long time horizon, owning businesses like these — rather than chasing short-term trends — can be a powerful strategy for compounding wealth and outperforming the market year after year.