Constellation Software Inc. (CSU.TO)

Tongue in cheek, he estimates that in 5 years, price will double from today; in 10 years, quadruple. That's based on 15% compounding every year; at that rate, your investment doubles every 5 years. He doesn't actually set price targets. His largest holding at 15%.

Must look at fundamentals of the business. For CSU, haven't changed; in fact, have gotten stronger. Deploys increasingly large amounts of capital, disciplined in looking for high rates of return before acquiring. Founder-run, founder-owned. High margins. Not much debt. High and consistent ROIC. Well run.

12-month price target of $3980. Poster child for Canadian tech. He'd still buy 1/3 here around $3740. Buy another 1/3 if you see it around $3550, and the final 1/3 at $3325. So well managed. All about vertical integration, a great way to expand. He has a full position at 4.5%.

Great-looking profile. Uptrend since 2022, got overbought, now pulling back. Healthy right here. If you own it, hold, and look to buy more.

With some companies, you wait for a pullback to enter but it never comes. On his radar. Small change in strategy, looking at larger deals. Great capital allocators. The spinouts can continue the work of the smaller deals. 

Owns shares in company - longtime owner. Excellent company with history of compounding capital at strong rate. Largest software company in Canada (private). Vertical market software (niche business use) roll up strategy has proven very fruitful. Recurring revenue excellent for bottom line. On track for continued growth. Owner/operator mindset very good for investors. Company can be compared to a private equity company that specialized in software. 

Without a doubt, one of the best investments you could have made. Management is unbelievable. Sound business, wonderful balance sheet. As a value investor, does he really wants to pay 35-40x earnings for the hope that the past will repeat? Much steeper incline at that valuation to repeat the same sort of return.

Always looks expensive. Phenomenal job of underlying business. Very well run. Wishes he had a time machine to go back and buy it cheaper.

Probably one of the best capital compounders in the world. But the secret's out. Very few years that it hasn't had a positive return. (Research reveals that going back to 2006, 2022 was the only year not positive.) Excels at small deals that private equity firms won't do, and this lets them keep growing. Spins off lots of cash. Loves it. Valuation is rich.

Don't focus on PE. There are some nuances to amortization that make earnings look quite low, and PE look in excess of 100x. Look at price-to-cashflow or FCF yield. Trades somewhere around 30-32x cashflow, fairly reasonable multiple, comparable to a MSFT. Wait for a pullback, if you can get it.

Everyone wants it, so they pay up for it. There hasn't been a year in his career that he hasn't been able to add it to client portfolios. Take advantage of volatility on a bad quarter or headline news. Don't chase, just be patient.

Very strong company with high margins and cash flow growth. Capital allocation skills very strong. Re-investment into the business allows company to compound company at a high rate. Would recommend investors buy. 

Currently in long term up trend. Very good for investors. Excellent chart and technical analysis. Is a great option for the long term investor. High margin business with excellent management team. 

Likes it, adding. Keeps marching up and to the right. Executes game plan flawlessly. Tons of runway. 

Doesn't think stock will split. Executes incredibly well with acquiring and growing assets. Price is up, but keeps outperforming. You could buy 1 or 2 shares, it's the percentage return that's the important part. Yield is 0.15%.

A formula that works. Can't argue with it, just look at the chart. Really good at what they do. Often trades at a new, all-time high, and it's OK to buy at those times, because all the shareholders are happy and company continues to execute.

He'd prefer CSU over TOI, but you should also look at LMN. LMN has done tremendously well since it was spun off. LMN was a vertical business that catered to agri, financial services, and education.

MSFT has software that goes horizontally across a whole bunch of industries, whereas CSU is more vertical. It's been very steady, even when the market goes into selloff mode. Has 5 operating segments.

TOI is out of Europe, and more on the engineering side.