Automatic Data Processing (ADP) -- Consistent Performance in Workforce Solutions | Fundsmith 2024 Q4

Delivering Steady Growth with Reliable Business Model

Apr 13, 2025

Summary

Investment rationale: Strong position in payroll and human capital management solutions.
Market positioning: Leading provider of workforce management services.
Risks and challenges: Economic fluctuations impacting employment levels.
Recent performance: Positive attribution of +1.3% to the fund’s performance in 2024.
Future outlook: Continued focus on innovation and client retention to sustain growth.

Automatic Data Processing (ADP, Financial) was noted in the Fundsmith 2024 Q4 letter for its consistent contribution to the fund's performance. Fundsmith LLP praised ADP's reliable business model and steady growth in workforce solutions. The company's ability to deliver consistent results aligns with the fund's strategy of investing in stable, high-quality businesses.

"ADP which makes its 2nd appearance continues its metronomic performance. It rarely shoots the lights out in terms of performance but then neither does it disappoint which makes it a good stock for our strategy." — Fundsmith LLP, Fundsmith 2024 Q4 Fund Letter

Read full letter at gurufocus Fundsmith 2024 Q4 page.

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