Buying CSU and (…)!

Another note to myself — and for those interested in the CyberMoat newsletter.
Tech valuations are high these days. Yet even in such expensive times, a star occasionally falls — giving an opportunity to buy a wonderful company at a fair price.

Constellation Software is a Canadian company that acquires and manages vertical-market software businesses worldwide, focusing on long-term, decentralized growth and strong cash-flow generation.
It recently experienced a major drawdown, becoming roughly 30% cheaper — a rare event for a business of such quality.

Since Constellation operates more like a conglomerate, using typical metrics like P/E can be misleading. If you need to look at a single measure, focus on P/FCF or perhaps Constellation’s own indicator (P/FCFA2S) for a more realistic view.

So, I bought Constellation Software (TSX: CSU) at an average price around C$3337 (what a number, huh? 😊 ), with a P/FCF ≈ 21.4.

[Be aware: there’s a Q3 earnings call shortly today. No idea what will happen afterwards 😅 ; technically, the direction is still down — but…]

Btw., recently I also bought another company — smaller, U.S.-based, and not exactly “tech.”
I’ve chosen not to disclose the name, but for those with some computing power, here’s a hint:
92e441ce3f3b9830f368ffd58bf1feb44abdba471046dadfead1ddc5ce34c56a
(the format is simply ticker|price).

This is not investment advice (even when you can crack that hash!). I’m sharing this as a learning note — my qualifications are next to none.