Constellation Software: Principled, Profitable, Permanent

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[00:02:39] - [First question] - How Chris and Akre came across Constellation Software 

[00:05:23] - An overview of Constellation

[00:08:42] - The origins of Constellations’s 30-year legacy of extraordinary returns

[00:11:59] - A deeper explanation of vertical market software as it relates to Constellation

[00:15:32] - The impressive scale of Constellation despite its niche-targeted portfolio

[00:18:06] - Their incentive structures and their avoidance of stock-based compensation

[00:21:07] - Additional ways in which Constellation stands out, relating to the Rule of 40 

[00:23:22] - The barriers that keep competitors and copycats from overtaking them

[00:28:02] - The three legs of Constellation’s acquisition engine

[00:32:59] - Recent spin-offs of assets as opposed to straight acquisitions

[00:35:47] - How Constellation is planning for the future

[00:38:15] - Why they’re considering expansion towards non-VMS acquisitions

[00:40:32] - Capital allocation and Mark Leonard’s outlook more broadly

[00:43:48] - How the business reflects Mark’s nature and values

[00:47:33] - How much technology risk does the business face?

[00:50:58] - Is organic growth a concern? 

[00:57:42] - Lessons for operators when studying Constellation’s story