Q: Hi, Thank you for the updated research report on Constellation Software. I found it really interesting and highly informative. We have owned CSU shares in all family members' accounts and thanks to stock's glowing performance over these years ( Big Thanks to 5i's strong conviction), its weighting continues to grow. Even after trimming our holding regularly, every year, CSU has a weighting between 12% to 15%, in each portfolio. In addition, we also own TOI, between 2.5% to 3.5% for each member. We like CSU a lot and the TOI/Lumine spinoffs are just one of those host of reasons. Need your expert opinion on following:
1. We leave the CSU weight as is and continue to trim each year, eventually to reach,
say 7-10% weight over next 5-10 years. Do you see much company/sector risk with this strategy ?
( This approach has helped us in spreading huge built in capital gains - ACB $450, over separate years. Based on tenure/experience of our ownership, we are very comfortable with 10% +)
2. We cut TOI holding to <2% or eliminate altogether, as CSU already has a large ownership in the company.
3. We leave CSU and TOI, at currents weights 12.5%/2.5%, in each member's portfolio and do nothing.
Total Tech weighting in each member's portfolio is 20-25 %, balance being SHOP and KXS,
Thank you.
1. We leave the CSU weight as is and continue to trim each year, eventually to reach,
say 7-10% weight over next 5-10 years. Do you see much company/sector risk with this strategy ?
( This approach has helped us in spreading huge built in capital gains - ACB $450, over separate years. Based on tenure/experience of our ownership, we are very comfortable with 10% +)
2. We cut TOI holding to <2% or eliminate altogether, as CSU already has a large ownership in the company.
3. We leave CSU and TOI, at currents weights 12.5%/2.5%, in each member's portfolio and do nothing.
Total Tech weighting in each member's portfolio is 20-25 %, balance being SHOP and KXS,
Thank you.