Constellation Software has no way to benefit from AI and little organic growth, so 21x GAAP EBIT looks fair, with perhaps a downside skew if churn rises across its portfolio in the next five years. The market's negative reaction is rational. Its small vertical software businesses were run financially rather than for product, many still on-prem, with no central AI strategy as software gets cheaper to build. Organic growth was 2% in constant currency; inorganic growth is fundamentally different. … Show more

Bending Spoons is not compelling because so much of its strategy is M&A, at a magnitude far beyond the typical. It made roughly 17 acquisitions over the past five years versus 3 for Broadcom, a count that may be off but is directionally right. M&A is not bad in itself, and Bending Spoons beats Accenture and Constellation Software among acquisition-led names, but there are better opportunities. x.com  x.com 

Constellation Software is a good opportunity in a market said to have none, because it has doubled free cash flow available to shareholders while its market cap has gone nowhere. x.com 

Sygnity is the best investment among the vertical-market software compounders like Constellation, Topicus and Lumine, yet it still trades near its AI-selloff lows. It is the group's cheapest and fastest-growing member: first-half revenue rose at least 35% and profit at least 60%, but the gain faded the same day. With about 9% free float and no analyst coverage, large funds cannot buy it. That structural gap, not the business, creates the discount, and small investors can exploit it. x.com 

TransDigm looks more reasonably valued after its forward P/E fell from 40x to 27x on a $1.5B market value drop for withdrawing from a $1B acquisition. Walking away shows discipline, even though acquisitions are where TransDigm makes great money. @PythiaR argues the real issue is the DOJ's signal on its ability to do M&A, a key growth driver given its lack of engine exposure; that makes things a little tougher, but the company will find a way. x.com  x.com  x.com 

Constellation Software's post-earnings selloff is myopic, reflecting a market unwilling to look beyond one quarter. Results are driven by lumpy capital deployed into acquisitions, which analysts can't forecast, so performance must be judged over years rather than against quarterly estimates. This quarter's organic growth deceleration feeds the bear case, but it was not a normal quarter, and management explained it well on the call; the market may stay in show-me mode until Q3. x.com  x.com  x.com  … Show more

Constellation Software is finally at a fair valuation, making it a good time to accumulate. It has three big opportunities: new types of investments such as small stakes in public companies, adding AI to its thousands of software products at little extra cost, and buying small software companies in Asia and other less competitive regions. x.com 

Constellation Software and its spin-offs Lumine Group and Topicus.com are among the few software companies run for shareholders' benefit, which assures a good outcome if they are bought at modest valuations. Under 20 times earnings is reasonable, but no more. x.com  x.com 

Constellation Software is one of the few names where AI disruption likely widens the opportunity set. @cap_zay points to its culture, lack of stock-based compensation, diversification and an acquisition hunting ground that has just become more fertile. x.com  x.com 

Constellation Software remains the gold standard of not doing dumb things, and half the game is owning companies that avoid them. Takeaways from its AGM: it is firing on all cylinders, it has its own inference hardware and hosted models, and AI may let it charge more for new features and underwrite higher IRRs faster than rivals, though it may also raise attrition. Harris's Bender sees a possible wave of competition, but none has appeared yet. x.com  x.com  x.com  x.com