Cadence: Semiconductor Design Software Moat

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In this Christmas Day episode, Dave and Andrew play a fun “Santa wishlist” game: what stocks (and even a couple private companies) would they love to see under the tree—if the price was right. These are high-quality businesses they admire, but most are too expensive at today’s valuations, so they’re watching and waiting.

They run through a mix of consumer brands, software, finance/data businesses, industrial compounders, and a few “wish it were public” names. Along the way, they talk through what makes each company attractive (growth, margins, moats, culture, capital allocation) and what would need to change for them to buy.

Key Topics Covered:

“Santa wishlist” investing: great companies, wrong price (for now)

Growth vs. valuation: waiting for quality to become “buyable”

Moats and execution: why some businesses keep winning

Capital-light compounders: margins, cash flow, and pricing power

Private-company dream picks + what an IPO could mean

Timestamps:

00:00 – Stocks Santa should bring us”

03:08 – MercadoLibre (LATAM leader, 30%+ growth, pricey)

06:29 – Wingstop (franchise scale story, valuation still rich)

09:31 – Intuit (QuickBooks, elite margins, always expensive)

11:28 – Cadence (semiconductor design software “industry standard”)

16:05 – Fastenal (steady industrial compounder, valuation stays high)

18:45 – FICO (credit score moat + regulatory/competition risk)

30:04 – Old Dominion Freight Line (LTL leader, cyclical but elite)

39:11 –Reddit (attention + monetization potential, “lottery ticket”)

46:07 – Wrap-up

Have questions or want your story featured? Email the show at newsletter@einvestingforbeginners.com or comment below. Your feedback shapes the podcast!

Remember, invest with a margin of safety—emphasis on the safety. Have a great week, and we’ll talk to you next time.

Timestamps are generated by artificial intelligence, and are not 100% accurate depending on the platform used for listening.

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