Chit Chat Stocks

What Makes a Great Software Company? Plus, an Update on Constellation Software (CSU.TX)

26 snips
Jul 17, 2024
Braden Dennis, founder of Finchat.io, dives into software company investments, focusing on Constellation Software's growth and acquisition strategy. The discussion covers challenges in building a software business, misconceptions about software stocks, efficient operations, and opportunities in small-cap stocks and fintech. Discover insights on concentrated portfolios, successful acquisitions, and the importance of quality companies in investing.
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ANECDOTE

Braden's CSU Investment

  • Braden Dennis invested his entire $60,000 government pension payout into Constellation Software (CSU).
  • This initial investment, made when CSU shares were under $1,000, forms the basis of his large position.
INSIGHT

CSU's Execution

  • Constellation Software's success can be attributed to its aggressive acquisition strategy and vast network.
  • They have consistently executed on their stated goals, surprising investors.
INSIGHT

CSU's Acquisition Strategy

  • Constellation Software has been aggressively acquiring smaller vertical market software (VMS) companies.
  • They capitalize on bootstrapped founders' burnout, offering a quick exit route.
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