Key insights
- The author expresses strong bullish sentiment towards Broadridge and RELX, citing their data moats, sticky businesses, recession resilience, solid dividends, and AI tailwinds. They believe the current valuation is attractive based on FCF yield and growth. While the author's conviction is high, the limited scope and lack of specific data points temper the potential market influence.
Both of these companies seem extremely appealing. Like fat pitch level appealing at current prices. Proprietary data moats in mission-critical industries. Extremely sticky businesses with very high customer retention rates. They both are embedded in recession resilient industries. Solid dividends. Low cap-ex businesses. Growing revenue in mid to high single digits with profit growing faster. Valuation is very attractive from an owners' earning perspective (FCF yeild + growth) What am I missing? Is anyone familiar enough with these businesses to give some insight? They have both already proven that AI will be a tailwind for them and will deepen their moats. I don't get the disconnect. I am not smart enough for this opportunity to be real. I must be missing something.