Gold Standard of Naval Engineering at 6% FCF Yield & 5% Dividend
You will sleep well with a 10-yr 40% FCF margin, 10% growth, 20% CAGR return, ~100% market share, 4-year revenue visibility, net cash, deep moats, 80% ROIC, no viable alternatives, no coverage.
Sleep Well Investments is all about not losing capital.
My track record? My annualized return per pick is ~45%, and since inception on Substack, the Sleep Well Portfolio has outperformed the S&P500 by ~17%.
Flawless decision-making underpins this achievement; 4 of 4 sales and 12 of 13 buy transactions have been correct. The only losing ‘trade’ is the one I bought just before the tariff rhetoric.

The company featured today has been the gold standard in the industry for over half a century and a prime beneficiary of the multi-decade green energy transition.
there is NO viable alternative, NO AI risk.
95%+ gross 40%+ free cash flow margin, consistent for the last 10 years.
customers pay in advance and can’t withdraw from the multi-year contract.
net cash position, 6% dividends, and M&As just starting,
5-year backlog and steadily rising,
Yet, we can buy this quality business at just ~17x free cash flow and ~13x earnings.
It scores 14/20 points in my sleep well scorecard and is the cheapest stock I buy for the portfolio. The quality and reasonable price will protect the downside. The upside may be as high as the 20% CAGR return in the past 10 years and will come from a twin driver of value creation.
The (at least) 10%+ free cash flow growth and
Possible multiple expansions and M&A success.
I am optimistic that, provided the business passes my thesis tracking system each year, we can make a market-beating return.
This company is highly technical, so I will keep the deep dive simple. But regular readers will know that my reports are still very deep compared to what you find elsewhere. You will learn a lot today.
Furthermore, you won’t find a deep dive into this business anywhere on Substack (400+ investment newsletters). If you do, I’ll give you a refund.
If you want to make money and sleep soundly, read on!
We will discuss:
Company History
Why is it a sleep-well business?
Industry tailwinds
Unique business
Resilience in crises
Reinvestment opportunity
Unproven Competition
Minimal Business Risks
Reasonable Valuation
Sleep Well Scorecard
What to Track
If you are new, all my write-ups can be found here.