Paychex (PAYX)

Money sent to them is invested as a short-term float before paying it out, so interest rates matter. Rates coming down means potentially less income earned. He's held for last 10 years and would never sell.

They just delivered a top and bottom line beat. Is the number one payment processor for small-mid-sized businesses.

Shares fell today 6% on earnings, which he liked, including their forecast, but Wall Street didn't. Usually, their shares fall after reporting which makes this another buying opportunity.

Since 1995, has returned 14% annually. Margins have been growing as they've grown beyond payroll processing among small/medium-sized businesses, which offer growth. They benefitted from higher interest rates. He continues to buy it, though it's currently expensive. They project 6-8% revenue growth but will be hit if the economic weakens or rates decline.

They report Thursday. Pays a terrific dividend, but unfairly this name attracts analyst downgrades even when it does well.

A growthier name in the space. Likes the space, but pay attention to what you're paying for growth. Economic weakening will impact it. He's seeing better opportunities in larger-cap, software names like MSFT and AAPL.

They process payrolls for small/medium businesses. They just reported solid top and bottom line beats and raised guidance for this fiscal year. It pulled back hard earlier this quarter, but rebounded hard today.