The Joseph Carlson Show Five Quality Stocks To Buy Now
May 27, 2025
The discussion kicks off with a look at how high-quality companies like S&P Global and Costco are thriving. FICO's recent stock dip is analyzed amid regulatory hurdles, but long-term potential is emphasized. The mortgage industry faces changes impacting credit reporting practices, highlighting the risks of insufficient borrower evaluations. Salesforce's strategic acquisition of Informatica is unpacked, showcasing how it strengthens data management and AI. Finally, ASML's lithography monopoly and the competitive outlook for Amazon and Google are critically examined.
AI Snips
Chapters
Transcript
Episode notes
FICO's Regulatory Revenue Risk
- FICO faces potential revenue loss due to regulatory pressure to reduce credit scoring costs.
- Despite this, the impact may be less severe because many lenders will continue using the current tri-merge system.
FICO Cost Is Minor Compared To Other Fees
- The cost of FICO's credit score is negligible compared to much larger closing costs and broker fees.
- Regulatory focus on FICO seems misplaced given its relatively small expense in home buying.
FICO's Pricing Strategy Risks
- FICO has pushed pricing power too aggressively, causing regulatory scrutiny.
- This pricing strategy is a double-edged sword that can harm long-term growth.