Constellation Software Inc. (CSU.TO)

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.

His fault for not owning this great growth company. They could a number of things like raise their dividend, split the stock or spin off a business. This will continue to do well.

Grows 20% annually. Trades at 20x PE and has a fortress balance sheet. Well run.  Had grown quickly. Owns a ton of software companies.

A good long term investment that will continue to own. Very strong business with high margins. Good at M&A and has proven business plan extensively. Founder led with CEO owning large amount of shares. Return in capital remains strong. Vertical market software very profitable and sticky. Friendly "off ramp" for entrepreneurs who are looking to sell. ~36% compounding return since 2006. 

Very high margin business with strong management team. Very good at capital allocation. Recent stock price at all time high. 2024 looking to be strong year in M&A field. Earnings grew in 2023. Organic grown and margins increasing. Very disciplined management team. 

Has grown 31%, on average, over the past 10 years. Chart looks really good. A darling. Paused in 2023, seems to be doing that again. Pauses can last 3-6 months. Buy and hold. Loves the business. You'd want to be out around $3400.

Overbought. Look at the chart and draw a trendline. As with a lot of stocks, has arced up and moved way above its 200-day MA. Good company, but may retreat to the trendline. Don't buy now. If you own it, hold.

Has owned shares since 2014. Once of the best companies across the globe. Excellent capital allocation skills. Problem is that valuation is very high. Excellent business model (software acquisition) with high returns on capital. #1 position in company and is favorite business. 

Current valuation way too high for investors (~60x P/E). Too many companies that have been rolled into one. Does not like this business at this time. 

Shares pulled back, but he didn't find a reason apart from broad-based selling in the market. He's owned this a long time. It's a leader in the vertical market in software, which is niche used for specific applications in contrast to wider horizontal markets, like Excel. CSU is a serial acquirer and are financially disciplined, buying small/medium-sized companies. 

She feels it is over-valued at 40X earnings and only pays a 0.1% dividend. They acquire software companies and verticals - management has a phenomenal track record with this. Her concern is that they may have to start making larger acquisitions because of a possible shortage of the smaller ones they have been buying.