Why buy Constellation Software when Topicus exists?

u/Living-Number-9050 · Reddit — r/ValueInvesting · July 09, 2026 at 17:56 · ⬆ 16 pts · 💬 38 comments  | View on Reddit ↗
AI Summary

Summary

  • The post compares Constellation Software (CSU) and Topicus (TOI), arguing that TOI offers a longer runway and cheaper acquisition multiples in the VMS software space.
  • The author explicitly states they are "loading up on TOI," implying a strong personal long position.
  • The analysis is mostly opinion-based with limited quantitative data; it qualifies as a speculative take rather than deep due diligence.
Score 16
Comments 38
Upvote % 94%
Ideas
u/Living-Number-9050 Reddit r/ValueInvesting
The author claims TOI can acquire VMS software at far cheaper multiples than CSU, and has a longer growth runway. If TOI can sustain its acquisition strategy at lower cost while expanding its market, it could compound returns faster than CSU over time. The author is betting on TOI's relative value and growth potential compared to its larger peer CSU. Slower-than-expected acquisition pipeline, integration failures, multiple compression if VMS market matures, or CSU's scale advantages.
TOI HIGH
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This Reddit post, published July 09, 2026, features u/Living-Number-9050 discussing TOI. 1 trade idea extracted by AI with direction and confidence scoring.

Speakers: u/Living-Number-9050  · Tickers: TOI