Speedwell Research's Drew Cohen shares thesis on FinTwit favorite, Constellation Software $CSU.TO

Drew Cohen from Speedwell Research, joins the podcast to discuss his thesis on Constellation Software (TSX: CSU), who acquires, manages and builds vertical market software businesses.

For more information about Speedwell Research, please visit: https://speedwellresearch.com/

Speedwell Research profile on Constellation Software: https://speedwellresearch.com/companies/reports/constellation-software/

Chapters:

[0:00] Introduction + Episode sponsor: Tegus

[1:41] Who is Constellation Software and why are they interesting to Drew

[6:05] How $CSU.TO is scaling their business model / competing with private equity

[13:00] Reverse DCF, deploying capital, competing now with other billion dollar software businesses

[21:02] Mark Leonard - is $CSU.TO a jockey bet / capital allocation / sellers

[28:32] $CSU.TO - what takes this company out

[30:57] AI risk?

[32:52] Price increases / TransDigm comparison / competition risk

[40:08] $CSU.TO vs. parking capital at index fund / likelihood of deploying at least 50% of their cash flow over next 10-ish years

[45:07] Operating synergies with 6 verticals? Why not more spin-offs?

[47:07] Additional worry about $CSU.TO - changing incentive system

[51:58] Aside from Berkshire, what are other examples of Constellation-like culture

[54:57] Speedwell's favorite write-ups he's done recently + quick thoughts on $RH

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