TIP698: Best Quality Stock Idea Q1 2025 w/ Clay Finck & Kyle Grieve

We Study Billionaires - The Investor’s Podcast Network

Stig Brodersen

Education, Investing, Business

4.6 • 3.6K Ratings

🗓️ 14 February 2025

⏱️ 68 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

On today’s episode, Clay and Kyle give an overview of their best quality stock idea for Q1 2025. This quarter, they discuss AppFolio. AppFolio is a high-growth software company revolutionizing property management. Clay and Kyle explore its impressive revenue growth, competitive advantages, and how AI-driven innovations like Realm-X are helping AppFolio capture market share. The conversation also covers key risks, the competitive landscape, and the company's valuation, providing listeners with a comprehensive analysis of whether AppFolio is a compelling investment opportunity. IN THIS EPISODE YOU’LL LEARN: 00:00 - Intro 01:49 - A business overview of AppFolio. 13:04 - The five parties that AppFolio supports with their software services. 22:10 - How AppFolio is utilizing AI to create a moat around their business. 25:35 - Why AppFolio is a payments business disguised as a SAAS business. 30:16 - An overview of the competitive environment for AppFolio. 39:19 - Why we would consider adding back R&D expenses to determine a proper valuation for the business. 44:03 - An assessment of AppFolio’s management team, incentives, and valuation. And so much more! Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences. BOOKS AND RESOURCES Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, Kyle, and the other community members. Research stocks and SEC filings with Fintool. Mentioned Episode TIP465: Value Investing in the Digital Age w/ Adam Seessel. Related Episode: TIP604: Best Quality Idea Q1 2024 w/ Clay Finck & Kyle Grieve. Related Episode: TIP627: Best Quality Idea Q2 2024 w/ Clay Finck & Kyle Grieve. Related Episode: TIP652: Best Quality Idea Q3 2024 w/ Clay Finck & Kyle Grieve. Related Episode: TIP675: Best Quality Idea Q4 2024 w/ Clay Finck & Kyle Grieve. Email Shawn at [email protected] to attend our free events in Omaha or visit this page. Follow Kyle on Twitter. Follow Clay on Twitter. Check out all the books mentioned and discussed in our podcast episodes here. Enjoy ad-free episodes when you subscribe to our Premium Feed. NEW TO THE SHOW? Get smarter about valuing businesses in just a few minutes each week through our newsletter, The Intrinsic Value Newsletter. Check out our We Study Billionaires Starter Packs. Follow our official social media accounts: X (Twitter) | LinkedIn | Instagram | Facebook | TikTok. Browse through all our episodes (complete with transcripts) here. Try our tool for picking stock winners and managing our portfolios: TIP Finance Tool. Enjoy exclusive perks from our favorite Apps and Services. Learn how to better start, manage, and grow your business with the best business podcasts. SPONSORS Support our free podcast by supporting our sponsors: Hardblock SimpleMining Unchained Onramp Netsuite Found The Bitcoin Way Shopify Fintool Vanta PrizePicks Fundrise TurboTax HELP US OUT! Help us reach new listeners by leaving us a rating and review on Spotify! It takes less than 30 seconds, and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it! Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Learn more about your ad choices. Visit megaphone.fm/adchoices Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

Transcript

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0:00.0	You're listening to TIP. On today's episode, my co-host Kyle Greve and I give an overview of our best
0:07.1	quality stock idea for Q1 2025. This quarter, we're discussing Appfolio. Atfolio is a high-growth
0:14.3	software company revolutionizing property management. Since its IPO in 2015, the stock has compounded
0:20.7	at around 35% per year. As you'll
0:23.8	hear during this episode, the more Kyle and I dug into this business, the more we came to like it.
0:29.6	During this conversation, we discuss AppFOLio's business model, the five parties that
0:34.2	AppFOLio supports with their software services, how they're utilizing
0:38.0	AI to create a moat around their business, why they just might be a payments business
0:43.0	disguised as a SaaS business, an overview of the competitive environment, and why we would
0:47.9	consider adding back R&D expenses to determine a proper valuation for the stock.
0:53.3	At the end of the episode, we also touch on the events we're hosting for our TIP Mastermind
0:57.6	community in Omaha during the Berkshire weekend in May 2025.
1:02.7	We'll be temporarily closing the community to new members at the end of March, so be sure
1:06.9	to stick around until the end of the episode to learn more.
1:10.0	We're also hosting a couple of free events in Omaha, which will be organized by my colleague,
1:14.5	Sean O'Malley.
1:15.6	You can find more information on those events in the show notes.
1:18.9	With that, I bring you today's episode on AppFOLio.
1:25.8	Since 2014 and through more than 180 million downloads,
1:30.3	we've studied the financial markets and read the books that influence self-made billionaires the most.
1:35.3	We keep you informed and prepared for the unexpected.
1:39.3	Now for your hosts, Clay Fink and Kyle Greve.
	...

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