Thanks for the fresh analysis, for starters 💪—it definitely brings a breath of fresh air here. I’m not invested in Wolters, and I probably won’t be because I already have a lot of software stocks in my portfolio 😬, but I don’t think I need to say much more about the current valuation.
However, the market is currently somewhat underestimating Wolters Kluwer’s actual moat. The big concern is that if, for example, ChatGPT starts answering legal questions or calculating taxes, no one will need expensive specialized software anymore.” Of course, this risk exists—especially when it comes to simple, basic knowledge, AI can replace quite a bit.
But WKL doesn’t just sell information—it sells, above all, trust, verified data, and deeply integrated software solutions. Especially in fields like law, taxes, or medicine, inaccuracies and errors pose a major risk. The quality of the database is crucial here.
Furthermore, WKL has long since ceased to be a traditional publisher; it is now a SaaS company with high switching costs. AI could therefore be less of a threat and more of an additional growth driver through new copilots and premium features.
For me, the question isn’t whether AI is coming, but who has the best data and the most trustworthy infrastructure to benefit from it. And that’s exactly where I see WKL continuing to be well-positioned.
However, the market is currently somewhat underestimating Wolters Kluwer’s actual moat. The big concern is that if, for example, ChatGPT starts answering legal questions or calculating taxes, no one will need expensive specialized software anymore.” Of course, this risk exists—especially when it comes to simple, basic knowledge, AI can replace quite a bit.
But WKL doesn’t just sell information—it sells, above all, trust, verified data, and deeply integrated software solutions. Especially in fields like law, taxes, or medicine, inaccuracies and errors pose a major risk. The quality of the database is crucial here.
Furthermore, WKL has long since ceased to be a traditional publisher; it is now a SaaS company with high switching costs. AI could therefore be less of a threat and more of an additional growth driver through new copilots and premium features.
For me, the question isn’t whether AI is coming, but who has the best data and the most trustworthy infrastructure to benefit from it. And that’s exactly where I see WKL continuing to be well-positioned.
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•@Aktienhauptmeister Do you see more potential in other software stocks, or why didn't you choose Wolter Kluwer specifically?
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@Aktienhauptmeister So, as a lawyer, I can tell you that in the legal field, LLMs actually tend to increase the need for legal advice, because now every run-of-the-mill legal department employee—or, even better, other administrative staff—is going out and getting answers to their questions from ChatGPT and similar tools that are either completely or partially incorrect. In the legal field (including tax law), data isn’t freely available. Court rulings are, but they’re often cited incorrectly or fabricated out of thin air. Wolters Kluwer operates the second-largest legal database alongside Beckverlag. They also run a legal AI (Libra). While it isn’t particularly good (yet), it does have the advantage of having access to the database.
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•@undraiser_scjjl You can't be in two places at once. Just because I haven't invested doesn't mean the company is bad. I'm only human, after all 🤷🏼♂️😂
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•@jkb92 From a lawyer's perspective, it's obviously a little different 👍 but thanks for the clarification, and good luck with the investment 🚀
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