Constellation Software Inc. (CSU.TO)

He is a big fan of it and of the CEO Mark Leonard. It has acquired hundreds and hundreds of smaller software companies that have narrow markets, and then successfully integrated them. There are still lots more VS companies to buy and there is now the additional theme of AI.

If you own it, hold. If you don't, you can start building a position at current levels. Grown tremendously, so the question is whether their business will scale? Rigorous discipline has made it such a success. Doesn't overpay for acquisitions. High internal ROI rates have led to consistent growth and good EBITDA margins. Balance sheet is pretty good.

Massive company very good at software M&A.
Organic growth also going smoothly.
Excellent management team that is very good at capital allocation.
Founder led. 
Expecting further share price growth.
Vertical integrator of software business units.
Earnings growth compounding at 20% 

Excellent buyers of companies which is how they've grown for many years. Stock has done very well. Are spinning out companies to expand value. Can wait to buy a quality company. It's on her watch list. Shares are too high, but maybe enter on a pullback.

Lots of cache. More depth and breadth versus others. 

It is in a great trend and hitting new highs. Don't wait for a pullback which may not happen - buy a partial position now and when the tech sector has a cyclical upturn in October you could pick up more.

His Canadian software pick. Incredible allocators of capital. Customer loyalty is strong. He can see more spinouts going forward, with CSU retaining a super-vote but giving the spinout room to run. Capital spending on track to a great level for 2023. He'd want to make sure such a large company continues to deliver ROIC.

Incredible success over the years. Very successful spinouts. He's never afraid to add with new cash. With this stock, it doesn't matter what's happening with the economy, as they create value no matter what. Hold it through the cycle.

Tech is one of the best spaces now. The chart is trending up since last November. A good company. 

It is a consolidator of software companies and is now spinning off a new one called Lumin which should start trading soon. Last year it spun off a company called Topicus. Constellation Software is still an undiscovered stock. Its brilliant management has built a great runway of growth with lots of cash flow. People who buy their software stick with it.

Hasn't traded stock in a while.
Recent breakout suggesting good time to buy on the down side.
Might want to buy around 2200 level.

No, this is not the alcohol conglomerate, but a highly successful Canadian software company that boasts returns of 11% in the past year and 183% over the last five. For a tech company, CSU boasts a low beta of 0.81 and trades at a PE just below 81x. Compare that valuation to its five-year median average of 62.55x, but the current level remains 50% lower than its peak of 128.13x at the end of 2021. Read: Risk tolerance and safety for our full analysis.

His #1 holding. Best creator of shareholder value on the TSX since it went public in 2006. Has done about 700 acquisitions. Exceptional capital allocation skills. Good for growth part of a portfolio. New spinoff, Lumine, is cut from the same cloth.

His top conviction weight. Exceptionally well run. Did another spinoff, and he expects the Lumine shares in his account shortly.