What Quality Investors Can Learn from Constellation Software's Track Record
Consistency, ROIIC, reinvestment rate, providing no guidance, and other factors
Hi fellow Tortoise!
Welcome to another bi-weekly webinar! In this episode, we’ll highlight:
The US’ outperformance and why it could very well continue based on structural drivers that historically have created sustainable quality compounders in many areas, not just Big Tech).
Following our recently published deep dive: what can (or better, should) quality growth investors learn from Constellation Software’s impressive track record?
Finally, addressing one of our premium members’ questions on why we favor NOPAT over net income and free cash flow when coming up with a valuation multiple, as well as figuring out the portfolio-weighted underlying earnings growth rate.
The presentation can be watched below, including the slides and the transcript.
The slide below highlights our top 10 key takeaways on Constellation's long-term compounding, as well as its parallels with other companies in our portfolio. While we could have identified an additional 5 to 10 takeaways, these were the ones that stood out most to us.