Shawn O’Malley and Daniel Mahncke break down MSCI Inc. (MSCI), the global leader in financial market indexes that power the passive investing revolution. They explore how MSCI built its dominant, utility-like business model, its compounding potential, and whether the stock remains attractively priced.
IN THIS EPISODE, YOU’LL LEARN:
00:00:00 Intro
00:03:08 How indexes produced by MSCI help to organize, simplify, and provide context for different aspects of financial markets
00:06:01 What makes MSCI one of the highest quality businesses we’ve ever looked at
00:12:05 Why MSCI has become the industry standard for indexes outside of the U.S.
00:14:27 Whether passive investing will be a boon going forward for MSCI, or if declining management fees in mutual funds will devastate the business
00:30:13 About MSCI’s relationship with major asset managers like Vanguard, BlackRock, and State Street
00:54:01 Whether direct indexing will disrupt MSCI’s golden goose
01:02:59 How to think about modeling MSCI’s intrinsic value
01:06:59 Whether Shawn and Daniel add MSCI to their Intrinsic Value Portfolio
*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.
BOOKS AND RESOURCES
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Podcast interview with MSCI’s CEO.
MSCI Investor Relations’ page.
Pitch for MSCI on the Value Investors Club forum.
BuyBack Capital’s research on MSCI.
Check out The Outsiders, by William Thorndike.
Explore our previous Intrinsic Value breakdowns: Paypal, Uber, Nike, Reddit, Amazon, Airbnb, TSMC, Alphabet, Ulta, LVMH, and Madison Square Garden Sports.
Related books mentioned in the podcast.
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