CSU
✅ Constellation Software remains a top holding, considered one of the best companies.
⚠️ Valuation is becoming more demanding, with the stock trading at its highest multiple in history.
📉 Potential for flat growth in the coming years if the market doesn’t sustain the high multiple.
🔄 Reduced position to buy other opportunities with more potential for the next 5 years.
@Academiadeinversion:
“I have reduced a little because it is among my top five main positions, but it has risen a lot in recent years, and the valuation is more demanding. I have not sold everything. It remains among my main positions. It seems possibly the best company in the world, at least the one I feel most comfortable with, but what I am not so comfortable with is the valuation. If you invest in the very long term, I think that in my opinion, doing my calculations, it makes sense to continue as a shareholder of Constellation Software, but it is possible that in the coming years, if this multiple does not continue, which is a very high multiple, the highest it has had in its history, if the stock market does not pay so much for this multiple, it is possible that we will have years of fairly flat evolution. That is why I have taken the opportunity to sell a little and buy other opportunities that I see have more potential for the next five years, but at 10-15 years, I think Constellation Software today still makes sense, but if it also continues to rise, and especially rising at a rate greater than that of its income and its cash flows increase, I will continue to reduce.”
Watch the exact part of the video where Paco talks about Constellation Software here:
View the video on YouTube.
Read more articles featuring the most recent analysis of Constellation Software (CSU) at this link: CSU stock.
