CSU
Capital Senior Living
stock NYSE

SaaSpocalypse will also benefit CSU, right? Cuz it’s more likely they’ll get a good deal.

I’ll explain.
To preface, P/E can’t be used with CSU due to significant distortions in earnings from non-cash expenses/liabilities and amortization of acquisitions. The PE will always be artificially inflated due to many complicated accounting mechanisms, for instance, the IRGA liability relating to Topicus. Not a true accounting cash expense, but a liability that brings down bottom line earnings. I understand already deters many investors as it’s not simple to read the reports and just look at EPS.
The gold standard is free cash flow available to shareholders, basically CSU’s version of FCF. This FCF multiple is currently trading at a trailing ~17x and a forward estimate of ~14-15x. So, it’s actually quite inexpensive compared to historical multiples which have been as high as 30-35x pre-SaaSpocalypse.
So the FIX sale was rather simple. Honestly, I wish I could hold it, but I can’t given the current valuations and volatility of earnings. I simply have no accurate prediction as to the earnings visibility in the next 2-3 years, and I couldn’t justify the risk of holding at the current valuations.
With something like BRK or CSU, I can say with relative confidence of what earnings will be in 2 or 3 years time. Given the current valuations, the risk to reward is attractive. With FIX, it’s entirely skewed opposite and with too many underlying unknowns. I’d be holding a high value high multiple asset with no predictability of future EPS.
To make a point of how volatile a name like FIX is, the stock tanked 25% in one day on Deepseek. Or take this week with similar peers Limbach Holdings and Sterling Infrastructure. Sterling rocketed up about 80% in the past week. Limbach meanwhile missed earnings and plummeted 33% today.
To further understand,m the concentration risk, the technology portion of revenue from FIX rose from 19% to about 56% in just about 2 years. The top customer rose from 5% of revenue to 13%. This isn’t a healthy diversification of revenue or customer base.

I’m about 66% CSU and 33% BRK.B.

@OP
What’s your current stock portfolio allocation to positions besides CSU?

Their growth is largely acquisition based. CSU generally puts up 0-1% organic growth.
The gains come in acquiring fcf generating yet low/no growth companies. Then using the cash flows from those companies to buy more companies. Repeat. They can compound fcf over 20% but doing that, so you don't really need organic growth to make a really good growth rate. Anything organic is a cherry on top. 20% through acquisition and 5% organic is a 25% CAGR, which is awesome.

it's pretty obvious that the market doesn't believe in VMS in the near or long term future. they're priced to go out of business with the eventual arrival of AGI. lmfao keep holding onto dead companies while semiconductors are booming. how's the lost opportunity cost in CSU or Topicus doing for uyou?

Lululemon (LULU)
Abbott Laboratories (ABT)
Novo Nordisk (NVO)
Constellation Software (CSU)
Adobe (ADBE)
Fairfax (FFH)

Decent shout. I prefer to own the mother ship (CSU), but I should probably peer into Topicus.

CSU, BRKB, NTDOY, TOI.V, BRO, these are actually companies that have a moat. Dude above is a moron who reads the Motley Fool.

CSU wont even exist in 20 years.

Ich glaube der katastrophale Koalitionspartner ist vor allem die CSU, die ja z.B. diese zwei Wahlgeschenke gefordert hat.

Agree. It's definitely not helping with the sentiment.
Actually this is one of the primary reasons why I'm so bullish on Constellation Software (CSU). When sentiment is bad and liqudity dries up, more of these mid-market/small private software companies will have trouble with financing. Who benefits the most? It's the roll-up company that spends $2Bn+ in FCF every year buying small SaaS companies, now at depressed valuations.