CGI Group (A) (GIB.A.TO)

They are IT consultants and the company is one of their largest positions. It is always buying back stock or distributing some cash to shareholders. Along with increased margins it is at a good valuation, so a good time to buy. It is globally diversified, growing very well by acquisition, and gives a high return on invested capital.

Pressure for companies to increase efficiency, and this is achieved through digitization. In the sweet spot of IT outsourcing and consulting. Attractive valuation and free cashflow yield. Phenomenal compounder and allocators of capital, so lack of dividend doesn't bother him. No dividend.

Good results, but a cautious tone on the conference call. Possible cutback in IT spending. In the right place at the right time. Riding the AI trend. Not really that expensive. He plans to own it for a long time.

Absolute compounder on organic growth and acquisitions. Benefits from global digitization. Will be at the forefront of taking advantage of AI. Contracts with governments, banks, Fortune 500 companies. No dividend, uses free cash to keep making acquisitions.

Well run. People are trying to combat wage and cost inflation with technology. Global. Robust cashflows. Wait for pullback to add.

Has done well. More of a smaller, niche company. It's a matter of size and how you want to allocate exposure. CSU is his only software company, other than in the US. He likes the US because of the broader diversification to be had.

Initially chose it because it was undervalued compared to peers, saw growth potential organically and through acquisition. Has added verticals and geographic scope. Canada is only 20-30% of revenues, rest is global. Management has disciplined approach to acquisitions. Strong balance sheet. Valuation's increased, deserved due to higher margins. Still cheaper than ACN.

Drawbacks include no dividend and founder-controlled.

Very well run. Very strong as of late. 3-year earnings growth is quite strong. Driven by trend to digitization. With increased labour costs, pressure on companies to use technology. Wonderful business. Valuation is above his buy price, add on a pullback.

Has long owned this defensive tech name. Shares are catching up after Covid. Outsourcing and consulting are their businesses. The former is doing very well; targeting 70% of revenues in this business. Consulting amounts to helping businesses digitize and cybersecurity; growing well too. The PE is higher now, but compared to Accenture is a discount. Don't chase it. Pays no dividend.

Great business over a long time. Likes its large cap nature right now. Very liquid. Strong underlying business, still hiring, valuation still very reasonable given its stability. Benefits from outsourcing. Deserves a higher multiple.

Has owned this since 2010 at $15. Are very global. Have grown through discipline acquisitions in Europe and US. Their backlog continues to grow as more companies digitize and want cybersecurity, willing to outsource their back office. The PE has risen in recent years, so buy on pullbacks.

Very affordable tech name.
Company has done very good job building shareholder value.
Trading around 16X 2024 EPS.
Wait to buy shares on weakness.