CDK Global, Inc.
Thesis
CDK Global is a leader in providing technology solutions for the automotive retail industry. With a strong customer base and recurring revenue model, the company is poised for growth as it continues to innovate and expand its offerings, making it a compelling long-term investment.
Did it work?
No price data was provided, but from the public record the long thesis appears to have resolved favorably: CDK Global, which traded in the low-$30s after its 2014 spin-off from ADP, was taken private by Brookfield Business Partners in 2022 at $54.87 per share in cash, delivering a solid positive return plus dividends to long-term holders. The recurring-revenue franchise the thesis highlighted remained intact, and the premium buyout validated the business's value, even though actual revenue growth was more modest than the 'poised for growth' language implied. Confidence is low because the judgement rests on recalled market events rather than supplied price performance.