RELX

So why are you paying attention to what the market will pay for your stocks today? And he'd probably ask me to imagine my portfolio wasn't publicly quoted at all.

And instead, once a year, I received the accounts from Rolex or Games Workshop or some of my other holdings.

And would I conclude that my wealth has suddenly deteriorated 4.8% because somebody offered me 4.8% less for it this month? Probably not.

Charlie Munger would have been more brash in his teachings.

Fair play.

It's a particularly interesting business to look at through the lens that we've just discussed because something quite striking has happened to its returns over the last five years.

So using the measure that I consistently use in my own analysis to work out ROIC, the return that they are achieving on their capital that's been reinvested back into the business, RELX produced a return of 14.5% in 2021.

So in 2021, of the money reinvested back into the business, the capital that's been employed into the business, they achieved a 14.5% return in 2021.

But there are exceptions.

Eric Engstrom at Rolex, it is said that, I don't know if this is true, it is said that once upon a time he gave an interview to a newspaper.

I won't name the newspaper.

It's a pink one.

So will that continue today? We also saw some rotation in London too.

RELX was up 5.2%.

Sage was also up too.

The FTSE actually gained yesterday, helped by defensive stocks and also FED.

Code works doing quite well, and that's not even designed to do it.

So as people, I remember... walking into work at Reed Elsevier in Sutton in Surrey, and they'd installed in the cafe, 1995, a web-connected computer that you could use, because all our computers on the desk were on an internal server-based, non-connected to any external force, any external information it was in fact in fact it was ruthlessly uh guarded from the internet so there in the cafe two computers and i didn't have i had internet at home but but i didn't have one that would run netscape so i just went on it and i went wow my mind is blown wow You know, it was just, honestly, I haven't had nothing else.

Wikipedia, Facebook, Twitter, nothing really has done that to me until Claude Carwork.

Look in this folder, take control of my motion pointer, listen to my voice.

These were supported by strong evidence of adoption.

RelX CEO Eric Engstrom announced that 90% of the value of new sales is coming from the AI-enabled platform.

Roughly three-quarters of the renewal value is coming from the Lexus Plus with Protege package.

Similarly, adoption of the up-to-date AI product at Wolters Kluwer has continued to accelerate, and Verisk has seen exact AI licenses increase by a factor of 10 since March, though from a low base.

You just gotta keep moving, though, for sure.

But yeah, with, with four people influencing 40,000 people in the organization to innovate is possible, because I have talked to many others, right? The, uh, a long time ago I did an interview with LexisNexis, Reed Elsevier, actually the parent company.

30,000 employees, one chief innovation officer, and two direct reports, right? And that's the innovation team, and they talk about the same sort of things like you're talking about.

We just empower everyone in the organization to contribute ideas, to innovate.