Constellation Software Inc.

Let's continue.

I see that a very big part of your public ETF has a large bet on Constellation software companies, the spinoffs also.

So what do you see in those companies that you think the market is missing?

Again, these are just like the Caspi and other bets in the sense that we don't know what's going to happen.

I think for us, I mean, we like that sort of style of packaging.

We own a company over in the Toronto Stock Exchange called Constellation Software.

prior to the previous CEO, prior to health concerns, didn't take a salary from 2014.

He just relied solely on the share price return and the dividends paid out by the company.

Uh, kind of what Carl-Ance for, uh, M&A is a big part of my job.

So we do quite a bit of acquisitions at Medaxo and for that matter, Constellation Software, uh, writ large, but also, you know, once we, we bought businesses, brought them into the Medaxo family, I'm also accountable for the results.

uh that uh that we deliver as well so talent uh operational investments the whole bit so it's it's both m&a and operations that i'm accountable for

and how long have you been here now

OK, let's move to an email then from Hal.

He says, like so many others, I wonder about Constellation Software going forward.

May I have Bruce's thoughts on this? Yeah, we've had a lot of concerns or questions about Constellation Software, but it has bounced back a little bit.

And some people are, you know, putting their hope that it'll have a continued bounce.

What do you think about Constellation Software?

There's a couple of different things in how I look at it.

First off, if we saw really what the macro trend was, which was software was just across the board getting pressure on it because of AI, and that was rightfully, wrongfully painting everybody's brush with the same paint, who knows what that was.

And Constellation certainly suffered from that.

Hey, do you remember that AI was supposed to kill plenty of companies such as Constellation Software, Thomson Reuters, Stantec, CGI, Salesforce and all the likes? Well, today we're taking a look at the narrative versus the earnings and what is really happening right now.

And I think there are some great buying opportunities.

Disclaimer, the following is for education and general information only, not investment, legal, or tax advice, and not a recommendation to buy or sell anything.

Hey, what's up, American Moose? Mike from the Moose on the Loose.

Happy Monday.

A few weeks ago, I did a full report for my DSR members about AI and all those companies that are not dead yet and to see what was the bull case, the bear case, and to look at some numbers because, you know, when there is a big news happening most of the time the market panics they act like crazy so they buy a lot or they sell a lot and then you see companies like constellation software thompson reuters or stantec going down like 30 40 50 of their value all of a sudden just based on a story but you know at dsr what i like to do is to look at the story the narrative and then look at numbers As you can see, I have a long list here.

If you're on YouTube, you see that I have covered like Salesforce, CGI, automatic data processing, OpenText, Jack Henry Associates, Oracle, and even more than that.

But today we're going to concentrate on the first three companies here.

Here's where it gets really interesting, though.

Sequoia takes that exact same logic of mission critical digital assets and applies it to niche software companies, specifically Constellation Software and Roper Technologies.

Yes.

Both of these companies are masters of acquiring vertical market software or VMS.

Now, this is hyper specific software for things like transit agencies, medical clinics or school districts.

I look at Constellation Software's products like municipal plumbing.

Oh, I like that analogy.

It perfectly captures the operational reality of those products.

So, um, you know, I don't know about taking the loss on the stock, and not one that we do own.

Um, but, uh, we hold Constellation Software indirectly, and I prefer that over, um, this business.

I think it just remains a little bit more higher quality niche operator.

Um, we're getting earnings out September 10th, um, is the next important checkpoint.

These companies like Lifco and Lagercrantz and Agtech, and these names I didn't hear about and knew nothing about when I, you know, wrote 100 Baggers.

Um, and those are companies that have proven to grow very well by acquisition, including something like Constellation Software.

Which is, again, something when 100 Baggers came out, uh, maybe I was vaguely aware of, but otherwise didn't really know or appreciate.

So that, th- those are a couple of big ones for sure.

But the acquirers seem to have done very well, and it's come along at the same time as there's been this rise in these serial acquirers.

We've al- you know, Berkshire's always been an, an acquirer.

But then Constellation Software's sort of become more prominent in the investors' consciousness in any case.

And, and I agree, the Swedish, I wouldn't have heard- I knew nothing about Swedish acquirers maybe five years ago, and they seem to be much more prominent now.