Given geopolitical tensions, tariff uncertainty, sticky inflation and an AI investment cycle that has stretched valuations in certain pockets of the market, 2026 is definitely an environment that punishes investors who confuse a good story with a good business.
The AAII Growth Investing framework was built for exactly this. By requiring both an A+ Growth Grade of A and a G-Score of 7 or 8, it ensures that every holding that qualifies for the portfolio demonstrates fundamental quality across multiple dimensions, not just one impressive quarter or a compelling management narrative.
And for a limited time, you can try AAII Growth Investing for a full month with our $2 Trial to explore the strategy, the model portfolio, the Ideas list and the Growth Analyzer to decide if it’s the right fit for your goals.
Growth Investing positions Generac and ASML are up 105.7% and 49.4%, respectively, year to date as of May 28, and long-held positions Google and Amazon are up 334.9% and 195.9%, respectively, since addition to the model portfolio as of May 22. These are not momentum plays or narrative stocks. They are companies that passed every fundamental screen — factors like consistent revenue growth, strong operating cash flow and a G-Score that demands real earnings quality — long before the current environment made it painfully clear why discipline matters more than a good story.
You may be wondering why investors should care. The reason is simple: When Generac, ASML, Google and Amazon were added to the portfolio, they weren’t necessarily the obvious picks. They were identified through a disciplined, multiscreen process that individual investors can follow today, either by replicating the AAII Growth Investing model portfolio or by building their own portfolio using our Growth Ideas list.
Now, let’s zero in on ASML Holding N.V. (ASML): It was added to the portfolio back in October 2022, and as of May 22, it has returned a whopping +242.6%.
Did we have a Magic 8 Ball? No, we looked at the data and its fundamentals to determine if it was a high-quality company poised for long-term growth.
ASML is the world’s sole manufacturer of extreme ultraviolet (EUV) lithography machines — the critical equipment that enables chipmakers like TSMC, Samsung and Intel to produce the most advanced semiconductors on the planet. Its unrivaled technological moat, long-order backlogs and irreplaceable position in the global semiconductor supply chain make it a textbook example of the kind of structurally advantaged, fundamentally sound business the AAII Growth Investing strategy is designed to identify.
ASML’s G-Score of 7, Growth Grade of A and Quality Grade of A reflect exactly what the AAII Growth Investing strategy looks for — a business with the kind of deep structural advantages, consistent cash generation and fundamental quality that scores don’t lie about.
Purchased in October 2022, ASML has returned 242.6% since joining the portfolio, a result driven not by hype but by the same rigorous screens that identified its irreplaceable position in the global semiconductor supply chain long before the market fully priced it in.
And ASML is just one example. The AAII Growth Investing model portfolio contains 20 carefully selected stocks, and our Growth Ideas list provides even more opportunities, which are all identified through the same data-driven process designed to uncover high-quality growth companies before they become obvious to the broader market.
Every stock in our model portfolio must pass two independent, evidence-based filters before it earns a position. Neither filter rewards hype. Both reward durability.
AAII’s proprietary grade examines three things: whether a company has grown sales every single year for five consecutive years, where its five-year annualized sales growth sits in the “sweet spot” (not too fast, not too slow — the 40th–80th percentile) and whether it has generated positive cash from operations consistently. Crucially, it does not reward the fastest growers — those actually score lower. This is the first filter that separates sustainable compounders from one-cycle wonders.
Mohanram’s G-Score: Discovering stocks with fundamental quality
Developed by Partha Mohanram at the University of Toronto, the G-Score is an eight-point system that separates genuine growth from glamour. It tests profitability (return on assets, operating cash flow), earnings stability (low variance in return on assets and sales growth versus industry peers), and strategic investment intensity (R&D, capex, advertising relative to assets). A score of 7 or 8 is required for portfolio inclusion — meaning that a stock must be performing well across nearly every dimension of financial quality, not just one.
A+ Quality Grade: Using a cumulative score alongside liquidity guardrails
Beyond the two primary screens, qualifying stocks must hold an A+ Quality Grade of A or B, carry positive cash from operations over the trailing 12 months, show positive year-over-year sales growth in the latest quarter and meet minimum liquidity thresholds.
The result: Every portfolio entry has been stress-tested from multiple angles before a single dollar is committed.
For 30 days, you can dig into the full 20-stock model portfolio and see exactly which companies are currently passing the A+ Growth Grade and G-Score screens, explore the Growth Ideas list for additional qualifying stocks, and use the Growth Analyzer to run any company through the same fundamental filters that identified positions like Google, ASML and Amazon before their biggest runs.
Follow along as new additions are evaluated, understand why current holdings stay in or come out and get a feel for how a disciplined, data-driven growth strategy operates in real time, especially in a 2026 market where that kind of clarity is harder than ever to come by.
A curated model portfolio of 20 high-quality, sustainable growth stocks
The daily-updated Growth Ideas list of stocks that meet our stringent criteria
Our Growth Analyzer tool for your own stock research
Weekly insightful commentary
AAII Member benefits like the AAII Journal, Model Shadow Stock Portfolio, investor guides and live webinars, to name a few
A robust “How-To” section and onboarding process
And more!
Every holding in this portfolio started the same way — not with a hot tip or a market call, but with a disciplined process that asked the right questions about the right fundamentals at the right time.
P.S. If you have questions or need assistance, don’t hesitate to reach out to our dedicated Member Services team via email at [email protected] or call us at 312-766-8874. We’re available Monday through Friday, 8:30 a.m. – 5:00 p.m. Central Time.
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We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.
