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The Misfits: Gartner (IT)
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The Misfits: Gartner (IT)

The ubiquitous research & advisory firm doesn't completely fit the mold of a Misfit stock, but that may not be an issue.

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Misfit Alpha
Apr 27, 2025
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The Misfits: Gartner (IT)
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Portrait of Sir Thomas More, Hans Holbein the Younger, 1527, oil on panel (The Frick Collection)

I set out with two goals for this newsletter:

  1. Give underappreciated companies the shine they deserve.

  2. Identify the traits these companies have in common to better pick the next generation of great companies.

This journey has led to some not-quite-definitive-but-pretty-close-to-definitive characteristics to look for: Enduring business models, well-aligned management teams, and good-but-not-great returns that don’t engender lots of competition.

Occasionally, some companies work incredibly well, but don’t necessarily fit this profile. Case in point, Gartner (NYSE: IT). The research and consultancy firm has been a market-beating stock, regardless of the time horizon you choose.

chart

Although Gartner has been an incredible performer, it does not display many of the traits I would typically look for in a company. Its performance has been so good that it makes me reconsider whether these criteria are good at sniffing out great investments or if they, too, are overlooking other great investments.

Let’s dig into why Gartner does so well even though it doesn’t seemingly fit the typical Misfit stock profile.


Shoutout to Koyfin for their data and charts. Koyfin has become an integral part of how I screen for, track, and analyze companies. Thanks to having a decade of data at my fingertips instead of manually going through stacks of quarterly and annual filings, the analysis process has become more thorough and much faster.

Up your analysis process by signing up for Koyfin. Click on the link below and receive 10% off your annual subscription.

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Disclaimer: I have an affiliate partnership with Koyfin and receive compensation if you sign up via the link above. It helps me fund this endeavor. I would still recommend using it even if I didn’t have this partnership because it’s an awesome product, but I’d be stupid to turn down a revenue opportunity. You get a discount, Koyfin gets new business, and I get a commission. Win-win-win).

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