TIP531: Mark Leonard: The Best Capital Allocator You've Never Heard of

The Investor's Podcast (We Study Billionaires) - The Investor’s Podcast Network

Stig Brodersen

Education, Investing, Business

4.6 • 3.6K Ratings

🗓️ 5 March 2023

⏱️ 63 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

On today’s episode, Clay Finck does a deep dive into Constellation Software (Ticker: $CSU). Constellation Software is a Canadian holding company that has acquired over 600 vertical market software businesses. The company was founded by Mark Leonard, and has delivered exceptional returns to shareholders since their IPO in 2006. The stock has had an average annual return of over 34% from 2006 through the end of 2022. If you are like Clay and enjoy learning about high-quality businesses, then you won’t want to miss this episode. IN THIS EPISODE YOU’LL LEARN: 00:00 - Intro 03:01 - What makes Constellation such a high-quality business. 08:32 - The similarities between Mark Leonard and Warren Buffett. 09:57 - What Constellation’s business model is. 19:32 - How Constellation garnered a reputation that founders are more than willing to sell to. 21:39 - Clay’s takeaways from reading Mark Leonard’s shareholder letters. 42:21 - How Clay views the valuation of Constellation Software today. 44:10 - Why Clay took a position in Constellation Software to hold for the long-term. Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences. BOOKS AND RESOURCES Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, and the other community members. Mark Leonard’s Letters. Chris Mayer’s blog post on Constellation Software. The 10th Man Blog. Don’t miss our review of Joel Tillinghast's book - Big Money Thinks Small. Watch the video here. Check out Clay’s episode covering legendary British Investor Terry Smith. Watch the video here. Follow Clay on Twitter. NEW TO THE SHOW? Check out our We Study Billionaires Starter Packs. Browse through all our episodes (complete with transcripts) here. Try our tool for picking stock winners and managing our portfolios: TIP Finance Tool. Enjoy exclusive perks from our favorite Apps and Services. Stay up-to-date on financial markets and investing strategies through our daily newsletter, We Study Markets. Learn how to better start, manage, and grow your business with the best business podcasts. SPONSORS Support our free podcast by supporting our sponsors: Bluehost Fintool PrizePicks Vanta Onramp SimpleMining Fundrise TurboTax HELP US OUT! Help us reach new listeners by leaving us a rating and review on Apple Podcasts! It takes less than 30 seconds, and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it! Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Learn more about your ad choices. Visit megaphone.fm/adchoices Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

Transcript

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0:00.0	You're listening to TI P.
0:03.0	Hey guys, welcome to the Investors podcast.
0:05.0	I'm your host, Clay Fink.
0:07.0	And the listeners are in for a treat today
0:09.0	as I'm going to be doing a deep dive
0:11.0	into constellation software.
0:13.0	If you're anything like me,
0:14.0	enjoy learning about high quality companies
0:16.0	with an incredible capital allocator at the helm.
0:19.0	Then I think you're really going to enjoy this episode.
0:22.0	To give you a bit of a backstory,
0:23.0	I have an interview with Chris Mayer
0:25.0	that will be released on the podcast
0:27.0	in early April.
0:28.0	And I saw that Chris held constellation software
0:30.0	in his portfolio.
0:31.0	And after I did a little bit of research,
0:33.0	I got really interested in this company
0:35.0	and what they do.
0:36.0	And I especially got interested
0:38.0	in their founder, Mark Leonard,
0:40.0	who's the founder and president of constellation.
	...

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