Subject: OT Canadian Buffett resigns, stock falls 17%
Constellation Software shares fell 17% after CEO Mark Leonard resigned for health reasons, raising leadership and capital allocation concerns.

Under his leadership, the company has generated a lot of value for its shareholders, being one of the best investments over the past 20 years, outperforming MAG-7 giants (except Nvidia).

https://seekingalpha.com/artic...

Constellation has returned nearly 30,000 per cent since it went public in 2006, including dividends, compared with the roughly 670 per cent return of the technology portion of the S&P/TSX Composite index, Bloomberg reported.

https://financialpost.com/inve...

Mark's investment approach is radically different from the typical venture playbook.

While his former VC colleagues chased unicorns, Mark systematically acquired vertical software companies that everyone else deemed too small.

His criteria were simple:

Profitable from day one
Serving essential business functions
High customer retention (90%+)
Markets too niche for big competitors
Instead of integrating acquisitions like traditional private equity, he did the opposite.

Each company kept its brand, its culture, its management team, and its independence.

The only requirement was to stay profitable and send excess cash to headquarters for the next acquisition.

This hands-off approach created something beautiful. Word spread that Constellation preserved what founders had built. Business owners started calling Mark directly when they were ready to sell.

While other acquirers promised synergies that usually meant layoffs, Mark promised permanence.

This permanent ownership model created profound advantages. Management teams knew they weren't being groomed for a quick flip. Customers trusted that their software provider won't disappear after a strategic exit. Employees could build long-term careers without acquisition anxiety.

The financial results speak for themselves. Over 1,000 acquisitions later, Mark has created a compounding machine that generates exponentially more value than any traditional buy-and-sell strategy.

https://henrythe9th.substack.c...