Q: Hi 5i. My question is prompted by Thomson Reuters' long, seemingly inexorable, decline, but it is more of a general question. I have a sense that companies that have either a controlling or at least a major interest held by a family tend to be less likely to pull out of a dive than do companies that are broadly held. Do you have any thoughts on this?
5i Research Answer:
Generally, we would agree. Family run companies such as AGF and others have not really proven themselves in crisis times (of course there are some exceptions). The issue with TRI, though, is that its historical record is in fact exceptionally good. It has made great acquisitions and diverstitures, and managed cycles very well. The stock had done quite well, and less than eight months ago was at an all time high. EPS has gone from 58c in 2017 to an expected $5.00 next year. We would consider the family and management to be better than average for such companies.