The Greatest Capital Allocator No One Knows About | Mark Leonard of Constellation Software (TIP531)

Рет қаралды 26,502

Жыл бұрын

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Clay does a deep dive into Constellation Software (Ticker: $CSU). Constellation Software is a Canadian holding company that has acquired over 600 vertical market software businesses. The company was founded by Mark Leonard, and has delivered exceptional returns to shareholders since their IPO in 2006.
▶️ RELATED EPISODES:
- Intrinsic Value Analysis: Constellation Software: • A Company To Watch Out...
IN THIS EPISODE YOU’LL LEARN:
- What makes Constellation such a high-quality business.
- What Constellation’s business model is.
- The similarities between Mark Leonard and Warren Buffett.
- Clay’s takeaways from reading Mark Leonard’s shareholder letters.
- How Constellation garnered a reputation that founders are more than willing to sell to.
- How Clay views the valuation of Constellation Software today.
- Why Clay took a position in Constellation Software to hold for the long-term.
🖊️ Access the transcript and learn more about the guest here: www.theinvestorspodcast.com/e...
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Пікірлер: 48

@WeStudyBillionaires Жыл бұрын

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@pkozanov Жыл бұрын

Clay, let me be the first one to commend you for gifting all of us with yet another truly superb video! I very much enjoy, benefit from, and appreciate your work! Thank you! Needless to say, I already shared the video with several friends.

@clayfinck Жыл бұрын

Thank you so much, Pavel! Your support truly means the world to TIP. I look forward to seeing you in Omaha soon!

@bentobox7788 Жыл бұрын

Just discovered this diamond in the rough. Subscribed. You deserve more subscribers.

@WeStudyBillionaires Жыл бұрын

Much appreciated. Feel free to share to your friends!

@Tendomcgoobin Ай бұрын

Its not a diamond in the rough. It was in 2008 maybe. You're late.

@bentobox7788 Ай бұрын

@@Tendomcgoobin Digging through old comments and telling them they're late? See the irony?

@KamilMauel Жыл бұрын

Great Job Clay. You have discovered the stock with no negative years since its IPO in 2006 till the last one (even in USD). 16 in a row with the GFC right after the start. There are few stocks positive then but all had a worse year sooner or later - like McDonald's in 2012. What a pity 2022 stopped this (Guinness?) record 🙁

@ashishwadekar6395 4 ай бұрын

Thank you so much Clay Finck for sharing this gem with us! I am confused with the DCF analysis done by Clay. Could someone please help me understand the analysis? Thanks.

@Steven.C.S. Жыл бұрын

Inspiring stuff, thanks for sharing! I'm wondering about the interview that's supposedly been deleted from Mark Leonard. Does anyone happen to have a link or source?

@clayfinck Жыл бұрын

Shoot me a DM on Twitter!

@TFJ2024 Жыл бұрын

What’s your thoughts on sea limited a analysis would be awesome!

@lukemaloney-grimes5816 4 ай бұрын

Your videos are truly brilliant for investors like me. Thankyou

@WeStudyBillionaires 4 ай бұрын

Glad you like them! 💯

@vishalnangare31 3 ай бұрын

23:12 Thanks for sharing 🙏

@WeStudyBillionaires 3 ай бұрын

Thanks for watching! 💯

@streetsmarts404 10 ай бұрын

Excellent channel. Subscribed and liked in a heartbeat. Keep up the great work!

@WeStudyBillionaires 10 ай бұрын

Welcome aboard!

@minhphung3663 Жыл бұрын

Would be great to understand how CSI acquires 100% of the target company and yet still manages to have "incentives in place" to motivate founders who essentially just exited their business.

@Patrickpettibone-lo2rp Жыл бұрын

Often those sorts of deals have workouts, where if the business hits xxx metric they pay an extra payment.

@RomilCPatel Жыл бұрын

Usually through an earnout

@freedomworks3976 Жыл бұрын

❤fantastic job 😊

@WeStudyBillionaires Жыл бұрын

Thank you! Cheers!

@henrywhh Ай бұрын

This is one of the best podcast I have listened to on a company. I liked the CSU company but was concerned about investing as I didn’t know how they would keep finding companies and growing. I think I her that Mr Leonard only sold one or the 600 companies he acquired and he regretted it. This is more than remarkable. Can the company continue to deliver.. it appears that they not only have a great leader but they have a great formula for success.

@WeStudyBillionaires Ай бұрын

Thank you so much for the kind words! ❤

@thesauce669 10 ай бұрын

This compounding for a public company sounds "GE"ish---I always question if there is book cooking with such astronomical rates of compunding

@furtsmagee1513 2 ай бұрын

Great video

@WeStudyBillionaires 2 ай бұрын

Glad you enjoyed it! 🎉

@ilarihaggren9927 7 ай бұрын

One of the best videos on CSU out there!

@WeStudyBillionaires 7 ай бұрын

Glad you think so!

@MrMowww1 7 ай бұрын

Very professional report on a charismatic individual and company

@WeStudyBillionaires 7 ай бұрын

SO happy to hear that! 🙌

@VGBPebble 4 ай бұрын

Very well explained. Thanks Clay. We appreciate you man.

@WeStudyBillionaires 4 ай бұрын

Glad it was helpful! 💡

@real23lions 10 ай бұрын

I just found out about this guy. Mind-blowing 😮

@WeStudyBillionaires 10 ай бұрын

Glad you found the video interesting!

@McFlashh 2 ай бұрын

He has a greater annual return than Warren Buffett (34% vs 20%, obviously with a much smaller sample size but still incredible) and not much know about him. Considering he lives past 80 years old, this stock will be a great buy to hold for long.

@WeStudyBillionaires 2 ай бұрын

Thank you for watching the video! 💯

@Klorel123 7 ай бұрын

impressive PEG ratio. Probably a good company. Not sure, if i dare to buy at this price.

@WeStudyBillionaires 7 ай бұрын

Glad you found the video interesting!

@AmitSingh-re4te 10 ай бұрын

I still don’t know what this company is about, is it a software company or a company that buy other businesses. Or maybe both

@peetoose 8 ай бұрын

It's a holding company that buys software companies.

@jimmybris123 Жыл бұрын

Organic growth less than 2% per year. He is rolling up smaller businesses, cutting costs without increasing revenue. How do we know it ends differently from Valeant Pharmaceuticals?

@clayfinck Жыл бұрын

Keep in mind that the cash flow generated by the business units typically gets pushed up to the capital allocators to go make more acquisitions. They can create more shareholder value through acquisitions than through growth internally. Any growth that happens internally is happening with very little capital investment.

@NoRegertsHere 7 ай бұрын

Buy off private market for 4PE, gets revalued on the publicly listed market at 16PE (or 35PE as CSU currently sits). Smaller software companies have their value nearly 10x in value instantly. Or 4x at a more reasonable PE