Do You Believe in the Growth Potential of Motorola (MSI)?

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]