Q: I have held a full position in TRI for a short period of time only since Nov. 2020. When I bought it I thought with 3-5 % revenue growth and a growing dividend I would see @ 10% return over time. Since that time it has doubled in share price. Can you help me account for the difference.
5i Research Answer:
The timing of the purchase was certainly good, coming in the middle of the pandemic and prior to zero percent interes rates. But the company has executed very well also, increasing its dividend and reporting very strong earnings. It is seen as a 'safe' growth company. Free cash flow has improved and it has made several good acquisitions since 2020. At 42X earnings it is not cheap, but still within a reasonable range of its historical valuation. It is simply, a great company that continues to compound returns through growth. We like it.