RE: I’m liking this more and more…5 Oct 2025 13:49
Relevant view from James Thomson who manages top performing Rathbone Global Opportunities Fund. “ Pricing power is crucial. A company should be able to hike its prices when inflation hits. Look at the likes of Microsoft and Netflix, for example. They've managed to raise their prices with very little fallout. Consumers - and corporations - who can't do without their services will continue to pay up for subscriptions, regardless of the extra expense.
Companies that have built business models around subscriptions catch my eye.
Subscriptions work because
this expenditure is typically built into household and corporate budgets, with hard-to-switch-off services.
Recurring monthly or annual fees cut out the decision process of whether or not to renew. It's automatic. That ensures repeatable and recurring revenue streams.“