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  5. DSG: In Chris's recent webinar he mentioned the similarities between TCS and DSG as well as the same between GSY and TCS. [Descartes Systems Group Inc. (The)]
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Investment Q&A

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Q: In Chris's recent webinar he mentioned the similarities between TCS and DSG as well as the same between GSY and TCS.

Now my question here is if I was only to own one of each of the two which ones have the best opportunities for growth going forward and which meets Warren Buffets criteria most closely?

Thanks


Sheldon
Asked by Sheldon on April 02, 2024
5i Research Answer:

Between TCS and DSG, we feel that DSG more closely aligns with Warren Buffett's values, however, TCS, being smaller, likely has higher growth opportunities going forward. For a more balanced approach between growth and downside protection, we like DSG. 

Between GSY and PRL, it is still early days for PRL, but we feel that given its limited share issuance and its fairly strong balance sheet, that PRL might be closer to Buffett's values than GSY, although it is fairly equal. For growth, we feel that PRL has a higher growth opportunity today, but it is a newly traded public company, and so its risks are slightly higher than GSY.