CoStar Group, Inc. (CSGP)

CoStar collects commercial property data and sells access to it by subscription.

The company spent years walking buildings, measuring floor space and recording deal terms — work that cannot be quickly reproduced. The resulting database became the industry standard: brokers, valuers and investors use it because nothing of comparable completeness exists.

Subscriptions are rarely cancelled and prices rise annually. The second part is listings marketplaces: apartment rentals, where the company holds a strong position, and home sales, which it is entering expensively and with heavy advertising. Those investments are what determine current profitability. Risks: the property transaction cycle and the cost of entering a new market. The company pays no dividend.