Core Viewpoint - Wedgewood Partners anticipates increased market volatility in the coming years and has moderated its investment enthusiasm, with the Wedgewood Composite underperforming major indices in Q4 2025 [1] Performance Summary - The Wedgewood Composite returned -1.8% (net) in Q4 2025, while the S&P 500, Russell 1000 Growth Index, and Russell 1000 Value Index returned 2.7%, 1.1%, and 3.8% respectively [1] - Year-to-date, the Composite gained 4.3%, compared to 17.9%, 18.6%, and 15.9% returns for the respective indices [1] Stock Selection and Strategy - The underperformance in 2025 was attributed to poor stock selection, valuation corrections of strong past performers, and being structurally underweight in AI stocks [1] - Wedgewood Partners highlighted that crowded AI investments and stretched valuations may pressure prudent investment decisions in 2026 [1] Focus on Motorola Solutions, Inc. - Motorola Solutions, Inc. (NYSE:MSI) reported an 8% revenue growth and a 9% earnings per share growth, with expectations for similar growth in 2026 despite challenges from a government shutdown and acquisition dilution [3] - The stock experienced a one-month return of 7.49% but lost 13.82% over the last 52 weeks, closing at $400.61 per share with a market capitalization of $66.743 billion on January 16, 2026 [2] - Wedgewood Partners added to their positions in Motorola Solutions as the stock traded at more attractive relative and historical forward price-to-earnings multiples following a sell-off [3] Hedge Fund Interest - Motorola Solutions, Inc. was held by 51 hedge fund portfolios at the end of Q3 2025, a decrease from 55 in the previous quarter [4] - While acknowledging Motorola's potential, some analysts believe certain AI stocks present greater upside potential and less downside risk [4]

Company Overview - Khaveen Investments is a global investment advisory firm serving high-net-worth individuals, corporations, associations, and institutions [1] - The firm is a registered investment adviser with the Securities Exchange Commission (SEC) [1] - It offers comprehensive services including market and security research, business valuation, and wealth management [1] Investment Strategy - The flagship Macroquantamental Hedge Fund maintains a diversified portfolio with exposure to hundreds of investments across various asset classes, geographies, sectors, and industries [1] - The investment approach integrates top-down and bottom-up analysis, blending three core strategies: global macro, fundamental, and quantitative [1] Core Expertise - The company specializes in disruptive technologies that are reshaping modern industries [1] - Key focus areas include Artificial Intelligence, Cloud Computing, 5G, Autonomous and Electric Vehicles, FinTech, Augmented and Virtual Reality, and the Internet of Things (IoT) [1]

Core Insights - Motorola Solutions, Inc. (MSI) is set to announce its fiscal Q4 earnings for 2025, with a current market cap of $64.8 billion [1] Financial Performance - Analysts anticipate MSI will report a profit of $4.03 per share for Q4 2025, reflecting a 7.5% increase from $3.75 per share in the same quarter last year [2] - For the current fiscal year ending in December, MSI is expected to report a profit of $13.85 per share, an 8.8% increase from $12.73 per share in fiscal 2024 [3] - The company's EPS is projected to grow by 6.6% year-over-year to $14.76 in fiscal 2026 [3] Recent Earnings Results - MSI reported better-than-expected Q3 earnings, with record revenue, earnings, and cash flow, driven by strong demand for safety and security solutions [5] - Q3 revenue increased by 7.8% year-over-year to $3 billion, slightly beating consensus expectations [5] - Adjusted EPS for Q3 rose by 8.6% year-over-year to $4.06, exceeding analyst estimates by 4.2% [5] Stock Performance and Analyst Ratings - Over the past 52 weeks, MSI's stock has declined by 15.5%, underperforming the S&P 500 Index's 18.6% return and the State Street Technology Select Sector SPDR ETF's 27.1% increase [4] - Wall Street analysts maintain a "Strong Buy" rating for MSI, with eight out of twelve analysts recommending "Strong Buy," one suggesting "Moderate Buy," and three indicating "Hold" [6] - The mean price target for MSI is $493.78, suggesting a potential upside of 26.9% from current levels [6]

Core Insights - Motorola Solutions, Inc. is leveraging AI-driven innovations to transition critical enterprises and security providers from reactive incident detection to proactive safety and situational awareness [1][11] - The company is focusing on enhancing operational efficiency and safety in large-scale, mission-critical environments through advanced AI applications [1][7] AI Innovations - The Avigilon Visual Alerts system utilizes intuitive conversational interfaces to broaden the detection capabilities across extensive camera networks, allowing security teams to create customized alerts for specific site needs [2][11] - Motorola's generative AI capabilities are delivered on-premise, transforming traditional video security into a site-specific operational engine that identifies a variety of risks beyond conventional security threats [3][7] Industry Applications - The AI-powered solutions are particularly beneficial for critical sectors in the Middle East, such as oil and gas and healthcare, enhancing safety and compliance through real-time detections [4] - Use cases include alerting workers to potential hazards and monitoring restricted zones, as well as identifying patient falls in large hospital settings [4] Customer Feedback - Customers in Saudi Arabia have reported that the AI-driven Avigilon platform aids security teams in consolidating data and responding effectively during incidents [5] Product Offerings - Motorola showcased long-range cameras for accurate detection in extreme environments and operational resilience software to improve event response efficiency [6] - The company is also deploying VB400 body-worn cameras globally to enhance the security of police officers and safety officials, contributing to a steady revenue stream [9] Financial Outlook - For the fourth quarter of 2025, Motorola expects non-GAAP earnings per share to be in the range of $4.30 to $4.36, with revenue growth projected at approximately 11% [9][11] - The company is experiencing strong demand in the Products and Systems Integration segment, particularly for LMR and video security solutions [8]

Industry Overview - The Zacks Wireless Equipment industry is positioned to benefit from strong demand trends due to the rapid deployment of 5G and the transition to cloud and fiber networks [1][4] - The industry includes companies providing networking solutions, wireless telecom products, and related services for voice and data communications [3] Growth Drivers - The deployment of 5G is expected to enhance scalability, security, and mobility, driving the proliferation of IoT [4] - Expansion of fiber optic networks to support 4G LTE and 5G standards is anticipated to act as a tailwind for the industry [4] - Network convergence is being pursued, combining voice, video, and data communications into a single network, which is expected to reduce service delivery costs and expand coverage [5] Profitability Challenges - Short-term profitability is compromised due to high infrastructure investments and costs associated with first-generation 5G products [6] - Geopolitical tensions, supply chain disruptions, and high customer inventory levels are additional factors affecting profitability [6] Integrated Services - Industry participants offer mission-critical communication infrastructure and services that enhance operational efficiency and safety for mobile workforces [7] Market Performance - The Zacks Wireless Equipment industry has outperformed the S&P 500, with a growth of 26.4% over the past year compared to the S&P 500's 21.1% [10] - The industry is currently trading at an EV/EBITDA of 31.46X, higher than the S&P 500's 18.87X and the sector's 19.76X [13] Key Companies - **Motorola Solutions, Inc. (MSI)**: A leading communications equipment manufacturer with a strong market position, experiencing robust demand for video security products [16] - **Ubiquiti Inc. (UI)**: Offers a comprehensive portfolio of networking products, benefiting from growth opportunities in both emerging and developed economies [19] - **Clearfield, Inc. (CLFD)**: A leading provider of fiber optic products, witnessing strong demand for its home deployment kits, which enhance deployment efficiency [22]

Core Viewpoint - The MC34063, introduced by Motorola in the early 1980s, has become a universal solution for "good enough" power conversion, offering a low-cost, highly versatile DC-DC conversion option despite not being the most efficient [1][4]. Group 1: Historical Context and Development - The MC34063 integrates key elements of a switching regulator into an 8-pin IC, allowing for buck, boost, or inverting conversions with minimal external components [1][3]. - At the time of its release, most low-cost designs relied on linear regulators, which were inefficient. The MC34063 provided a single-chip solution that was flexible and cost-effective, addressing the industry's need for affordable DC-DC converters [4][5]. Group 2: Technical Specifications and Performance - The MC34063 supports input voltages from 3V to 40V and includes features like a 1.25V reference voltage source, comparator, driver stage, and a 1.5A peak current switch [3][4]. - Although it is not the most elegant or efficient design, its flexibility has led to widespread adoption in various applications, including automotive adapters and consumer electronics [5][12]. Group 3: Market Position and Longevity - The MC34063's success is attributed to its practicality and low expectations, making it a staple in low-cost designs where simplicity and cost are prioritized over performance [13]. - Despite advancements in technology leading to more efficient controllers, the MC34063 remains relevant in markets such as small appliances and industrial controllers, where its functionality meets the needs of cost-sensitive applications [13][12].

Core Viewpoint - The article highlights three technology stocks that are currently available at attractive prices, offering potential for both dividend growth and capital gains as the market continues to recover from previous corrections [1]. Group 1: Microsoft - Microsoft (MSFT) has shown stability and growth potential, with its Cloud segment revenue increasing by 26% year over year in Q1 of its fiscal year [4][6]. - The Intelligent Cloud segment, driven by AI demand, reported a 28% year-over-year revenue increase, with Azure's revenue growing by 40%, indicating a strong growth trajectory [5]. - The stock is currently priced at $485.46, with a market cap of $3.6 trillion and a P/E ratio of 26, reflecting a fair valuation for a company expected to grow earnings at an annualized rate of 16% to 17% [6]. Group 2: Motorola Solutions - Motorola Solutions (MSI) specializes in communications equipment and software for various sectors, having acquired Silvus Technologies for $4.4 billion to enhance its offerings [7][8]. - The company is projected to grow earnings by 9% annually over the next three to five years, with the stock trading at a P/E ratio of 25, which is below its 10-year average of 32 [10]. - The current stock price is $383.38, with a market cap of $64 billion, making it a solid investment opportunity [9]. Group 3: Automatic Data Processing - Automatic Data Processing (ADP) provides essential technology tools for payroll and HR functions, benefiting from a growing global workforce [11][12]. - The company has a strong track record of dividend increases, having raised its dividend for 50 consecutive years, with an average increase of 11.5% annually over the past decade [12]. - ADP's stock is currently priced at $258.51, with a market cap of $105 billion, trading at 23 times its full-year earnings estimates, presenting a favorable buying opportunity [13][14].

Core Viewpoint - The investment philosophy is characterized as conservative yet opportunistic, focusing on financial data and business fundamentals to assess long-term prospects [1]. Group 1: Investment Philosophy - The approach involves quantitative analysis to evaluate a company's financial strength before applying qualitative judgment [1]. - Emphasis is placed on capital preservation, margin of safety, and avoiding permanent capital loss [1]. Group 2: Research and Publications - Investment research has been published on platforms like Seeking Alpha and FAST Graphs, with a focus on early-stage investment ideas and personal finance topics [1]. - The author has also written a book titled "An Average Joe's Millionaire Journey to Retire Early," which discusses wealth building and risk management [1]. Group 3: Engagement and Communication - The author values thoughtful debate and evidence-based discussion, encouraging engagement through comments or direct messages on Seeking Alpha and social media [1].

Core Viewpoint - The investment philosophy is characterized as conservative yet opportunistic, focusing on financial data and business fundamentals to assess long-term prospects [1]. Group 1: Investment Philosophy - The approach involves quantitative analysis to evaluate a company's financial strength before applying qualitative judgment [1]. - Emphasis is placed on capital preservation, margin of safety, and avoiding permanent capital loss [1]. Group 2: Research and Publications - Investment research has been published on platforms like Seeking Alpha and FAST Graphs, with a focus on early-stage investment ideas and personal finance topics [1]. - The author has also written a book titled "An Average Joe's Millionaire Journey to Retire Early," which discusses wealth building and risk management [1]. Group 3: Engagement and Communication - The author values thoughtful debate and evidence-based discussion, encouraging engagement through comments or direct messages on Seeking Alpha and social media [1].

Core Viewpoint - Motorola Solutions, Inc. (NYSE:MSI) is recognized as a profitable compounder with a valuation reset, making it an attractive investment opportunity despite a lowered price target from Morgan Stanley [2][3]. Group 1: Analyst Upgrade and Valuation - Morgan Stanley upgraded Motorola Solutions from Equal Weight to Overweight, setting a new price target of $436, down from $471, indicating a more favorable entry point for investors [2]. - The current valuation of Motorola Solutions is now closer to the S&P 500, altering the risk-reward dynamics for potential investors [3]. Group 2: Acquisition and Market Position - Motorola Solutions announced plans to acquire Silvus Technologies for $4.4 billion, with the deal expected to close in Q3 2025, enhancing its capabilities in secure communications amid rising geopolitical tensions [4]. - The acquisition of Silvus strengthens Motorola's hardware portfolio, providing additional resources to meet increasing demand from government and defense sectors for radios and related equipment [4]. Group 3: Financial Performance - In the recent quarter, Motorola Solutions maintained a solid balance sheet, paying $182 million in cash dividends and repurchasing $121 million of its own shares [5]. - The company also allocated $66 million for capital expenditures and retired $70 million of 6.5% debentures that matured during the period [5].