Roper Technologies Inc. (ROP)

For the next 10-15 years. ROP is a private equity companies buying little software and engineering companies. They're smart in acquiring companies, like Foundry of the UK, making CGI for Hollywood movies. 70% of revenues are recurring. EBITDA margin is 40%. Good cash flow with more money owed them than going out. (Analysts’ price target is $381.15)

A midcap and will own for the next 10-20 years. They're good at what they do. Revenue is up 13%. They give you lots of cushion in a down market. Even in a recession, they will grow over time. They turn around their cash flow faster than their net income to allow them to acquire more and pay down debt quickly. 15-20x earnings. Dividend grower. He will add during correections, but has no plans to sell.

It's 40 micro-businesses in software enterprise in areas such as healthcare planning and legal professional services. They have negative working capital which he always believed is a bad thing, but here they're generating cash in their business and never need to consume cash. They can react to change quickly. (Analysts' price target: $300.55)

A mini Berkshire. They hold medium-tech and medium-size businesses that are overlooked by the big guys and too big for the little guys. Low volatility. He'd keep buying it.

(A Top Pick Nov 8/16. Up 49%.) A very boring company. Has a beautiful chart going back many, many years. A miniature Berkshire Hathaway. Still a great company to buy.

They generate so much cash that they are able to pay off most of their debt quickly, so they can then make the next acquisition. They are also into areas such as medical software, TAG technology for the toll roads in Texas, Florida, New Jersey and New York State, and a little bit of oil and gas. They got into the right sectors at the right time. They eschewed all the old industrial stuff they used to have, but still keeps the high margin stuff. They have margins in the 63% range. He still buys this for new clients.

An industrial company. It has been chugging along sideways. Owns a bunch of different high-tech industrial equipment and analytical instruments. There are 43 independent businesses run under the same sort of program the way Warren Buffett runs Berkshire Hathaway. Scientific imaging is about 35% of the business, all the way down to energy and controls. Thinks this is a sneaky little smart play. Dividend yield of 0.69%.