FactSet & The Allure of Recurring Revenue

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January 31st. Another day, another stock dip. Honestly, it’s enough to make one consider a life of competitive vegetable gardening. Though, even that seems fraught with risk – slugs, aphids, the judgement of the horticultural society… No. Must focus. Today’s obsession: FactSet. And a rather large purchase of it, apparently.

McDonald Capital Investors, they’re called. Sounds terribly sensible. They’ve just splashed out around $24.39 million on 86,891 shares of FactSet Research Systems (FDS +0.62%). Which, let’s be honest, is more than I spend on groceries in a year. Probably more than I earn in a year. It’s all terribly unfair.

What Happened (Or, What I’ve Been Trying to Understand)

So, McDonald Capital Investors already had a stake in FactSet, but they decided to add to it. A significant addition, apparently. The filing says it’s a fourth-quarter thing. Dates. Numbers. It’s all terribly… precise. The total value of their holdings in FactSet is now around $53.90 million. An increase of $25.58 million. I tried to calculate my own personal increase in wealth today. It was… negligible.

The Portfolio Rundown (And My Own, Pathetically Small One)

FactSet now represents 3.31% of McDonald Capital Investors’ $1.63 billion in US equity assets. Which sounds impressive. My own equity assets are currently represented by a half-eaten box of biscuits. Top holdings, according to the filing: Progressive (NYSE: PGR – $201.24 million), Regeneron (NASDAQ: REGN – $160.73 million), Berkshire Hathaway (NYSE: BRK-B – $154.83 million), and so on. It’s all very… established. Very sensible. Unlike my investment strategy, which currently involves hoping for the best.

The Numbers (Because Apparently, We Need Them)

As of January 29th, FactSet shares were down 45% over the past year. Forty-five percent! It’s enough to make one weep into one’s chamomile tea. Vastly underperforming the S&P 500 by 60.35 percentage points. Still, they bought more. Which is… interesting.

Metric Value
Revenue (TTM) $2.36 billion
Net income (TTM) $599.60 million
Dividend yield 1.71%
Price (as of January 29) $252.79

What Is FactSet, Anyway?

  • Integrated financial data, analytics, and workflow solutions. Sounds… complicated.
  • Serves asset managers, investment banks, wealth advisors, and other financial institutions. People with actual money.
  • Subscription-driven model. Recurring revenue. Apparently, that’s the key.

The Theory (Or, What I Think Might Be Happening)

FactSet isn’t about a quick win. It’s not a “meme stock” or a “hot tip.” It’s about… stability. Recurring revenue. The kind of thing that keeps analysts employed and pension funds happy. It’s embedded in institutional workflows, apparently, which means switching costs are high. People don’t just cancel subscriptions, do they? Not easily, anyway. It’s like a gym membership. You pay for it, even if you don’t go.

The business is still growing, despite the stock price dip. Organic revenue growth, they call it. And operating margins are good. Apparently, they’re controlling expenses. Disciplined. I, on the other hand, am currently budgeting for a new pair of shoes. Priorities.

This isn’t a concentrated bet, either. It fits alongside other sensible holdings like Progressive, Regeneron, and Berkshire Hathaway. It’s not about finding the next big thing; it’s about adding to a solid foundation. Which is… reassuring. Although, I suspect my foundation is made of sand.

Units of Cryptocurrency Lost: 0 (so far). Hours Spent Watching Charts: 7. Number of Panicked Texts to Friends: 18. Must. Be. Disciplined. Long-term investor. Yes. That’s the plan.

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2026-01-31 02:32