Constellation Software Inc. (CSU.TO)

(A Top Pick March 5/12. Down 39.35%.) This is a “growth through acquisition” model so they do a lot of acquisitions. He Buys because he feels it has a rapidly expanding net present value of its future cash flows.

Prefers companies that have organic growth with good margins and a business model that makes them competitive in a way that they can gain market share. Great management who knows how to put businesses together but are basically driven by acquisitions. Have to do an acquisition almost every 2 weeks.

(A Top Pick Jan 13/12. Up 49.75%.) Has been a ton of acquisition announcements over the last 3 months so he expects to see some positive revisions up from analysts as we go into 2013. Still a Hold.

Not too late to get into this one as long as the fundamental change factors continue to be positive. Not super expensive. Trades at almost 17X next year’s earnings but less so on cash flow, which is something like 10 or 12 times.

Chart shows a strong uptrend. What’s not to like? He likes to buy a stock in an uptrend near the trend line. If it breaks the trend line, you bailout but not until then.

(A Top Pick Dec 12/11. Up 58.3%.) A software company that buys other software companies. Best at buying best-of-breed software companies for very low multiples. Superb management team. Almost a 4% dividend.

(Market Call Minute) Predictable cash flow. Mature software gives them licensing revenue. Performing well and tightly held.

(Top Pick Oct 17/11, Up 54.69%) Return on capital makes it a profit machine. A lot of acquisitions this year and expects spectacular growth next year.