Cadence Design Systems, Inc.

“Cadence is one of the best businesses in software and semiconductors: sticky, mission-critical, high-margin, cash-generative, and supported by durable complexity tailwinds. The issue is not business quality but price. At today’s valuation, much of the next several years of strong execution appears already embedded in the stock, leaving limited margin of safety and raising the odds of acceptable business results translating into merely average shareholder returns.”