Canada certainly has a number of excellent technology options to choose from. I think investors are spoiled with a relatively rich (and increasingly so in recent years) pool of such companies providing excellent long-term growth potential today. However, there really are a handful of outperformers I’d point to as the best of the best in this group.
Among these, I think Constellation Software (TSX:CSU) would certainly fit the bill as a stock I’d look to as the "gold standard" for technology growth companies in Canada. The company’s historical track record speaks for itself, and I’d encourage all long-term investors to consider adding exposure to high-quality long-term growth names like Constellation in a TFSA right now.
Yes, this stock is expensive. However, Constellation has earned its valuation multiple through years of compounding and market-beating growth. Investors continued to be enamored with Constellation’s management team, who I think is best in class when it comes to finding great quality companies at good prices to acquire.
The company’s growth by acquisition model has decades longer to run, with a very fragmented software sector ripe for acquisitions likely to remain the status quo. Currently, Constellation has thousands of small companies to choose from to acquire, and is likely to continue to outperform in this regard as a synergy-building acquisition machine.
Accordingly, for growth investors seeking a core TFSA holding right now, there’s no better company to consider than Constellation Software today.
Invest wisely, my friends.
