FICO - Fair Isaac Corporation

Christophe mentions he personally bought more FICO after a 70% crash and has been managing the position since 2021, implying a long-term positive view. However, he strongly warns viewers not to copy him without doing their own due diligence.

Bought the dip after ~17% crash. Sees forward P/E of ~18 as cheap, believes FICO's moat is deeply entrenched due to inertia, data history (13 years vs 2-3 years for VantageScore), and risk aversion. Expects FICO to weather regulatory/competitive threats and benefit from buybacks.

Mentioned as a low-capex, asset-light company he favors and allocated into during the capex rotation.

Highlighted as a company that executed a large buyback during a market downturn in 2022, leading to a rebound and higher EPS.

FICO's credit score is the trusted language of credit, but faces new competitive threats from VantageScore and regulatory pressure. The business shows improving margins (34% one-year), accelerating organic revenue growth (17.5% three-year), and high returns on capital. The host's valuation shows a middle intrinsic value of $1,250, but he wants a higher margin of safety at around $850 and would consider selling cash-secured puts to buy at a lower price.

Akre increasing position (6% to 8%); Valley Forge's largest at ~25%; host aggressively buying the dip. Stock down 50% from peak, but moat and thesis remain intact per managers.

Bought more after spectacular earnings and a 20% stock decline; monopoly pricing power, forward P/E of 20 versus historical average of 37, and valuation at 2021 lows make risk-reward very appealing; potential recovery to $2,000 per share.

Used as a model of honest management: adjusted metrics were lower than GAAP after a divestiture, it stays in its core lane, and it consistently under-promises and over-delivers. Also mentioned as a large position of investor Dev Kantesaria.

Host explicitly says he bought more FICO and is on the same side as Akre Capital, which has been a heavy buyer over the past six months.

Company will not be disrupted by AI, stock is cheap relative to history, and the software sector is undervalued.