Businesses are investing in technology, and so are we
The US economy grew at 2.5% in the third quarter of 2011. But the most interesting nugget in the report noted that business spending on equipment and software grew at a very robust 17.4% over last year’s levels.
Despite uncertainty about the future, businesses throughout the country are investing in technology to boost productivity and prepare for future growth. This story is true at Dock Street as well: we recently subscribed to FactSet, an extremely versatile software product for financial analysis.
FactSet’s stock has been a core Dock Street holding for many years. We’ve always been impressed with how the company was run but we could never afford to be a customer. Recently they introduced a product for wealth managers that, while not cheap, fits into our research budget.
The amount of detailed financial and economic information available in FactSet is staggering. We have only begun to scratch the surface of what’s available to us, but it’s already making our research practices more organized and efficient.
That research is also making its way into your portfolios. In fact, a number of our recent purchases have been aided by this greater access to detailed financial statements, timely earnings transcripts, and company presentations.
Of course, there’s information and then there’s interpretation. Our work entails pouring through all the details and then making the right decisions—and no software tool replaces that part of the process.
Best regards,
Evan McGoff
emcgoff@dockstreet.net
