RELX: The company to own forever – one of the very best businesses on Earth
A wonderful portfolio of businesses (leading provider in Academic Publishing, Risk and Legal Tools) benefiting from the complexification of the world
Welcome to the 9th investment case and 8th resilience idea on Crack the Market (and the most comprehensive RELX investment case you will find online)! Join me as I dissect arguably one of the highest quality and most defensive businesses in the world. I see this company benefiting from the growing complexification of the world and continue to play a critical role in enabling the proliferation of knowledge, law and management of risk worldwide.
Twice a week, I will release deep dives into stocks and sectors that fit into the three themes that I see winning in this age of tariffs and deglobalization: resilience, sovereignty & reshoring, China. I will then deep dive into the opportunities in the AI data center value chain.
Take advantage of this once in a generation opportunity to build long term wealth by investing in great stocks that will deliver returns for your portfolio for years to come.
You can already read my first 8 deep dives, all of which I see as winners in this new world of tariffs and deglobalization:
ASML (reshoring & China idea): The most innovative company in the world will 2.5x its EPS by 2030.
LKQ (resilience idea): The most defensive business in the auto industry is a tariff winner and could become a compounder.
Atlas Copco (resilience & reshoring idea): The best industrials business in the world is on sale, extremely resilient and will benefit from US reshoring.
Badger Meter (resilience idea): The perfect business in the perfect end market, water meters are the definition of resilience.
Knorr Bremse (resilience idea): Who knew making brakes was this lucrative? Rerating with self help story and upside from German infra plan.
Flex (reshoring idea): The electronics manufacturing giant building Nvidia’s servers and enabling reshoring is becoming a better business.
Itron (resilience & reshoring idea): Riding the grid investment super cycle and enabling smart grids.
Roper (resilience idea): A resilient cashflow compounder in the software space with inflecting growth.
After reading this article, you will understand why this company is so special and how it has been dominating super profit pools for decades, what it does, what makes it one of the highest quality businesses in the world, and why it is one of the rare stocks to own forever.
This company is a play on top line acceleration with advanced analytics tools and margin expansion. But it is also a very defensive business, perfect for times of uncertainty and decelerating macro like now.
In this article I go through:
RELX’s business and its three core divisions providing tools for productivity and workflow for professionals.
Why RELX provides such high quality earnings, backed by resilient growth, making it the perfect business to own to sleep well at night.
Why the company is seeing and will continue to see higher growth than historically and why GenAI is actually a positive for the business.
Why this company is becoming ever more important in a more complex world (more laws, rules, words in the tax code, and constant change).
Why RELX is arguably one of the highest quality businesses in the world.
