skip to content
  1. Home
  2. >
  3. Questions
  4. >
  5. CSU: I have been in and out of CSU a few times times the years (I should not have sold). [Constellation Software Inc.]
You can view 2 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: I have been in and out of CSU a few times times the years (I should not have sold). What are the major risks that could face Constellation? I am looking at a buy and hold for 10 years. Thanks
Asked by Dave on November 20, 2023
5i Research Answer:

A change in management would be a risk; investors love the current team and CEO, and any changes there would be worrying. As an acquisitive company, it could make a bad acquisition. Though based on its history this is probably not likely, but is a risk at some point. As it gets larger ($66B now) its acquisitions could have less of an impact. Growth could slow. It is not entirely without economic sensitivity. Stock valuations could be hurt with inflation/rates (though this would also make acquisitions cheaper). It could face lawsuits from employees and/or competitors or other problems from acquired companies. It could see goodwiill write-offs if acquisitions do not work out as planned. It could fall behind in technology as new technology emerges.