Latest news with #ConstellationSoftware
Yahoo
8 hours ago
- Business
- Yahoo
How to Build a $7,000 TFSA Position That Grows Year After Year
Written by Puja Tayal at The Motley Fool Canada Your Tax-Free Savings Account (TFSA) can be your go-to account for wealth creation as it allows your investment to grow tax-free, and you can even withdraw any amount at any time tax-free. No doubt, you have heard stories of investors who made millions by investing $10,000 in a company. Imagine that million-dollar investment being tax-free. If only you had invested $10,000 in Apple, Nvidia, or Constellation Software in 2005, you would be a multi-millionaire. There is no point in reminiscing about the lost opportunities of the past because that investment income would be taxable. The TFSA was introduced in 2009. From today's standpoint, ask yourself what the world will look like 20 years from now. The above three stocks that made their shareholders millionaires changed the way we work, communicate, and operate. Artificial intelligence (AI), self-driving cars, and digitization trends are shaping the future. Nvidia (NASDAQ:NVDA) is a no-brainer stock to buy and hold even at its current price of over US$144. Its graphics processing units (GPUs) are shaping the AI revolution. It is also at the forefront of the self-driving car revolution. No matter which generative AI rules the world – Chat GPT, Gemini, or DeepSeek – they are powered by Nvidia GPUs. Hence, Nvidia will thrive in the AI race. There are concerns about a slowdown in AI infrastructure spending. That is the nature of the hardware industry. Just like personal computers, there are upgrade and refresh cycles, when Nvidia sees strong enterprise orders. While the first cycle of AI infrastructure might be over, upgrades will follow, and demand will increase with each upgrade. Beyond the data centre, AI at the edge is the next big growth opportunity Nvidia is working on. Using AI to drive cars, automate industries, manage traffic, and create smart cities could drive the demand for Nvidia GPUs even more than data centres. You could consider investing $4,000 in Nvidia and see your money grow as technology evolves. The next growth stock is (TSXV:TOI), a spin-off of Constellation Software. Focused on the European market, has been acquiring vertical-specific software companies with strong and recurring cash flow from maintenance services. The trend of digitization and AI will make software an integral part of running any system. Mission-critical software will be indispensable and become the utility of the future. is a holding company of such mission-critical software companies. Instead of transferring the cash flow to shareholders, it is using that cash to buy more such companies. The new acquisitions add value to the company and increase the share price. Some acquisitions of are value additions, and some are overpriced. However, the consolidated returns are positive over time. In 2021, the company made losses as the tech sector was overvalued, but the effect of compounding has started kicking in. In a downturn, it acquires companies at attractive prices and increases returns. TOI is a stock to buy at the dip and hold for the long term for better returns. Compounding works best when given time. Canada is an export-led economy. Oil and minerals are commodities and may not generate long-term wealth, but a tech stock that makes logistics and supply chain management efficient can. Descartes Systems (TSX:DSG) has a wide range of customers across verticals that use its solutions – customs and compliance, global trade intelligence, inventory management, and route planning. Descartes makes logistics efficient for e-commerce, airlines, oil and gas, and many other companies. Now is a good time to buy Descartes stock as it dipped 15% in June over concerns of tariff uncertainty delaying decisions and slowing trading activity. As the tariff situation eases, trade will pick up and drive Descartes's stock upwards. Technology, the geopolitical situation, and globalization will further complicate trade, fueling demand for Descartes. The stock is poised to grow as its solutions remain relevant to trade complexities. Diversifying your TFSA growth portfolio across countries can help you mitigate country-specific risk. The post How to Build a $7,000 TFSA Position That Grows Year After Year appeared first on The Motley Fool Canada. More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Puja Tayal has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends The Motley Fool recommends Apple, Constellation Software, Descartes Systems Group, and Nvidia. The Motley Fool has a disclosure policy. 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
How to Make Your $7,000 TFSA Contribution Work Harder This Year
Written by Chris MacDonald at The Motley Fool Canada The Tax-Free Savings Account (TFSA) investing vehicle is one of the best, and perhaps most under-utilized, tools available to Canadian investors. This account allows Canadian investors to put $7,000 in after-tax dollars to work in an investing account, with the corresponding growth and dividend income provided by the investments in this account eligible to be pulled out tax-free at any point in time. For those planning for retirement, having access to a tax-free chunk of capital when it comes time to retire is a big deal. That goes double for those who plan to work into retirement, and/or those who expect to have a higher tax burden down the line. With the way fiscal spending is trending everywhere, that's a bet many may be willing to make. Here are three tips investors looking to maximize the performance of their TFSAs may want to think about right now. Generally speaking, most financial planners would advise investors to first consider which types of investments they're thinking about including in their TFSA. A very high-growth stock such as Shopify (TSX:SHOP) or Constellation Software (TSX:CSU) that has seen rapid price appreciation in recent years would be disproportionately rewarded by being held in such a fund. That's simply due to the fact that such stocks have continued to compound over time, and that capital appreciation investors would have seen from investing in such stocks early on would have resulted in most of the value of their current holdings being in price appreciation. In a TFSA, this price appreciation is tax-free. That said, putting all of one's TFSA funds in one or two particular stocks is a strategy most financial experts would also be up in arms about. A TFSA does disproportionately benefit investors who want to pick growth stocks that perform well. The key is that such holdings need to perform, and there are no guarantees on this front. Thus, holding a broader basket of diverse growth stocks may be the optimal choice for most passive long-term investors. Whether it's a growth-focused ETF or mutual fund, supplementing single-stock picks is a strategy I'm personally in favour of, and it is a strategy I think most investors should consider. One of the problems with a TFSA (which is similar to a Roth 401(k) in the U.S.) is the relative ease at which investors can pull their capital out of a TFSA when needed. While liquidity is great (and that's a feature of this investment vehicle), in terms of saving for retirement, excessive withdrawals over time from a TFSA can really degrade the long-term value that can come from holding high-quality growth stocks in this account. As such, I think the prudent advice for most investors is to put whatever possible into a TFSA (preferably to the maximum allowed), and let these funds sit there for as long as possible. That's the advice most financial experts would provide, and it's easier said than done. But for those who are patient and willing to let their winners ride, this is the account that makes the most sense to do so. The post How to Make Your $7,000 TFSA Contribution Work Harder This Year appeared first on The Motley Fool Canada. More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Constellation Software. The Motley Fool has a disclosure policy. 2025
The Market Online
4 days ago
- Business
- The Market Online
Alpha Ba Highlights Stock Picks from Canada to Latin America
In a recent appearance on The Expert Exchange, Alpha BA, Chief Investment Officer at Pillow Investment Partners, shared his top investment ideas, highlighting both Canadian and international companies he believes offer strong long-term potential in today's economic climate. Watch the above video for a closer look at trending topic in the global market Ba opened by revisiting a previous pick, Latin American e-commerce giant Mercado Libre, which has surged 50% since he last flagged it. 'We still like it,' he said. 'The company continues to grow around 35% annually, and we're paying 45 times earnings for that. With rising consumer wealth in Brazil, Mexico, and Argentina, and deepening commercial ties with China, we believe Mercado Libre still has a long runway.' Turning his focus to Canada, Alpha spotlighted Constellation Software, calling it one of the best ideas 'right in our backyard.' He praised its acquisition-driven strategy in the vertical market software (VMS) space, noting that the company has acquired roughly 1,000 businesses over the past decade while maintaining a 20 per cent return on invested capital. 'This is a $10 billion revenue company operating in a $60 billion addressable market. We expect 25 per cent to 30 per cent annual EPS growth over the next three years,' Ba explained. Another Canadian standout is AtkinsRéalis (formerly SNC-Lavalin), which Alpha described as 'very well-positioned' in the nuclear energy sector. 'It's trading at 30 times earnings with 45 per cent to 50 per cent expected EPS growth,' he said. 'As nuclear becomes a more important part of the clean energy mix globally, we think this business—its highest-margin segment—will receive greater market appreciation.' On the global stage, Alpha emphasized that his firm doesn't take a top-down approach by country but instead focuses on individual quality businesses. Among them: Ferrari in Italy, which he called a luxury brand with unmatched exclusivity and pricing power. 'They produce just 15,000 cars a year, and their return on equity is close to 40 per cent . The stock is expensive—but rightly so.' He also reiterated his firm's continued support for TSMC in Asia, citing its dominance in the global semiconductor supply chain. Wrapping up the conversation, Alpha underscored his team's commitment to long-term, fundamentals-driven investing. 'We're looking for disciplined companies with pricing power, strong returns on capital, and durable growth—regardless of where they're based.' Previously Ba gave a global market update in the the trade war disruption Be sure to stay up to date on all the latest stock market news at Join the discussion: Find out what everybody's saying about public companies and more by checking out Stockhouse's stock forums and message boards. The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.
Yahoo
4 days ago
- Business
- Yahoo
This Canadian Stock Could Be the Best Investment This Decade
Written by Amy Legate-Wolfe at The Motley Fool Canada When looking for the best Canadian stock to own this decade, the answer may not be a flashy newcomer or a trendy pick. It may just be one of the quietest, most consistent performers on the TSX. Constellation Software (TSX:CSU) isn't a household name for most Canadians, but it has built one of the strongest track records in Canadian market history. For long-term investors, this could be the stock to hold for the next 10 years and beyond. Constellation Software is a Toronto-based company that acquires and operates vertical market software businesses. That means it buys companies that serve specific industries, like software for libraries, police departments, or insurance brokers. These aren't high-growth social media apps or cloud platforms with huge hype. Instead, they're niche businesses that provide mission-critical services and generate reliable recurring revenue. And that's the secret to Constellation's success. The Canadian stock is now valued at around $104 billion and has grown consistently since going public in 2006. It operates through six major business units across North America, Europe, and Australia. Each division runs semi-independently, allowing local managers to focus on their customers while benefiting from the strength of the overall company. That decentralized model has allowed Constellation to scale without losing its grip on performance. In its most recent earnings report for the first quarter of 2025, Constellation reported revenue of US$2.7 billion, up 13% from the same period last year. Net income came in at US$115 million, up nearly 10%. Over the last 12 months, the company has generated $14.9 billion in revenue and $1.1 billion in net income. Those numbers are impressive for any company, let alone one that rarely makes headlines. The software firm is also incredibly efficient. Its return on equity is 26%, and its return on assets is 7.5%. Constellation is a cash machine, bringing in over $3.1 billion in free cash flow over the last year. It uses that cash to make more acquisitions, often small ones that fly under the radar but add meaningful long-term value. Unlike some Canadian stocks that make one big splashy deal, Constellation has made hundreds of small ones over the years. That strategy has worked exceptionally well. Yes, the Canadian stock trades at a high valuation. CSU's trailing price-to-earnings (P/E) ratio is around 97, and its forward P/E sits near 41. But this has never been a cheap stock, and it likely never will be. That's because investors are willing to pay up for the consistency, profitability, and long-term strategy. The Canadian stock has very little customer churn, very little debt pressure, and a clear path for continued growth. And in a world where many tech companies are still chasing profits, Constellation has delivered year after year. Analyst sentiment remains strong. Most experts have a buy or hold rating on the stock, with an average target price above $5,200. That's modest upside from current levels, but the real appeal here is the compound growth over time. It's not going to double overnight, but that's not the point. This is a long-term compounder, not a short-term trade. As Canadians tighten budgets due to rising mortgage costs and market uncertainty, it's more important than ever to focus on high-quality, dependable investments. In that kind of environment, owning a steady compounder like Constellation makes a lot of sense. Constellation Software may not get the same buzz as other tech names, but its results speak for themselves. It grows steadily, manages capital wisely, and serves industries that don't disappear in downturns. For anyone looking to invest in a Canadian stock that could define their portfolio over the next decade, CSU might be the one to watch. It's quietly magnificent, and exactly the kind of Canadian stock built to last. The post This Canadian Stock Could Be the Best Investment This Decade appeared first on The Motley Fool Canada. More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Constellation Software. The Motley Fool has a disclosure policy. 2025 Sign in to access your portfolio
Globe and Mail
02-06-2025
- Business
- Globe and Mail
Joint Press Release of Constellation Software Inc. and Topicus.com Inc. -- Topicus.com Inc. completes acquisition of Cipal Schaubroeck in Belgium
TORONTO, June 02, 2025 (GLOBE NEWSWIRE) -- Constellation Software Inc. (TSX: CSU) and Inc. (TSXV: TOI) today announced that Topicus' subsidiary Total Specific Solutions (TSS) B.V. ('TSS') has completed the sale and transfer of all issued and outstanding shares in the capital of Cipal Schaubroeck NV to TSS. About Inc. is a leading pan-European provider of vertical market software and vertical market platforms to clients in public and private sector markets. Operating and investing in countries and markets across Europe with long-term growth potential, Inc. acquires, builds and manages leading software companies providing specialized, mission-critical and high-impact software solutions that address the particular needs of customers. For further information, contact: Inc. Jamal Baksh, Chief Financial Officer Email: jbaksh@ About Constellation Software Inc. Constellation acquires, manages and builds vertical market software businesses that provide mission-critical software solutions. For further information, contact:
