Constellation Software Inc. (CSU.TO)

One of very few growth stories in Canada. Huge success over the years. Trades at over 50x earnings. If you look at the chart between 2022-2023, the stock drew down in the neighbourhood of 20%. Challenge is that if we go through difficult market conditions, the high-multiple stocks correct more.

For years and years, has missed growth, revenue, and earnings numbers. Overcrowded. Fully priced. You could buy on pullbacks, but it could easily correct 25% in a matter of weeks or months.

There is an uptrend in place along with tests of the trendline. You could buy at the beginning of up bounces but don't buy in the troughs.

Last year was phenomenal. This year a little slower, but that doesn't change the thesis for him. Still believes it has ability to grow topline and bottom line close to 20% a year. If true, in 3-4 years you'll get another double. No end to the acquisitions it can make, as well as spinoffs to encourage faster growth. Don't get too miffed about the quarter-to-quarter acquisition growth.

Excellent, well run. She prefers more balance between organic growth and M&A, and this one grows by acquisition. No opinion on whether stock will split. 

Lots of chop the last little while. Specialized, mission-critical software through acquisition of companies with above-average growth, consistent profitability, and outstanding management. Lots of free cashflow. Yield is 0.1%.

His choice in the space. Has spun out many of its investments. Very successful acquisition strategy.

Revenue and cashflow numbers are good. One of Canada's few strong, well-managed technology companies. Small dividend, but the growth is on the capital side.

Great company and competitive advantage. But does the investor have a competitive advantage of knowing something that the market doesn't? Otherwise, it's already priced in. For CSU, the answer is absolutely not. Without that investor advantage, you're just throwing $$ against a wall hoping something will stick.

Don't sell it. Has the top management team in Canada. The invented the vertical software consolidation business. They can continue to deploy capital at high rates of return. Strongly buy on pullbacks. They have never split their stock. Have high insider ownership. Can grow a lot for years to come.

Excellent company. Safe bet is to buy on pullback, but stock appears to always grow up. Would recommend buying and holding for the long term. Ability to generate revenue growth, and expand margins very strong. 

Has executed incredibly well--they know how to buy and grow software companies that need help to grow. Valuation has always been high, though.

It is in a good long term trend. It is maybe overbought and will likely pull back.

They missed recently and an acquisition isn't paying off as expected. It's always grown well by acquisition, but the bigger you get the bigger the companies you need to buy and more to pay. Trades around 18-20x cash low, but other companies trade at half that. 

Really nice uptrend since the end of 2022. Uptrend of higher lows is still there. In his RSI rankings, one of the top 3 stocks in NA even with the pullback. He continues to hold.

Investing is all about predicting the future, and are you paying a reasonable price for that future. You can still find good ideas even at 52-week highs. Still making acquisitions. Overpriced in the short term, but expects it to go a lot higher over the long term.

He's waiting for a nice pullback to buy more.