Let's face it: Nvidia (NVDA) can't grow the way it already has. The money now is in finding the next beaten-down or ignored stocks. So let's learn from two Wall Street giants who spend their days doing exactly that — Michael Burry and billionaire Bill Ackman.
Ackman disclosed in his latest investor letter that he bought S&P Global (NYSE:SPGI). The stock is down more than 20% from its 2025 high, and Ackman thinks the market threw out a great business over a fear that barely touches it. S&P Global sells financial data, and investors worry AI will make that data cheap and commoditized.
The selling picked up after Anthropic launched its Claude Cowork tool. Ackman's answer: the fear is aimed at the wrong part of the company. S&P Global runs three benchmark franchises — Ratings, Indices, and the Platts energy pricing business.
Ackman says these businesses produce high margins. None of them is a data-lookup product AI can copy. Ratings is a near-duopoly with Moody's, and the two rate over 95% of US corporate debt.
Companies pay for an S&P rating because it saves them roughly three times the fee in lower borrowing costs, and because lenders trust the name. AI can't manufacture that trust or the regulatory moat around it. What makes the stock long term: Debt keeps getting issued, and a wall of pandemic-era borrowing has to be refinanced in 2027 and 2028.
This helps the company's Ratings business. The shift from active funds to passive index funds feeds Indices. Buybacks alone are set to shrink the share count around 4% a year, and Ackman expects earnings to compound in the low-to-mid teens.
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