I agree with you that Constellation Software is a better investment than the IT consulting companies since it already has a large and sticky customer base, while consulting companies have to get contracts renewed with their clients and compete with each other.
Any thoughts on the payment sector? That sector is also getting beaten down this year like software.
I thought about looking at Fiserv but I don’t know how the industry is going to shake out with a growing number of competitors and the fact it’s easier for them to churn off.
Maybe if you can justify some end state in consumer payments that has good value,
And can justify Fiserv today is just pricing in their institutional business alone (which is way stickier than the consumer retail payments) then there’s some value there?
Every few years there are more entrants into this industry with a new angle and the competitive rivalry keeps going up since the early 2010s
Yeah payments is very competitive. Hard to say who is going to win. Ideal case would be if Visa and Mastercard sold off to < 20x multiple but idk if that will happen.
Fiserv is hard to say. If over the next 2 quarters the management and new new CEO turns around the company and delivers on the $8 EPS guidance for 2026, then maybe it is a good value play. But for now its too hard to say.
I agree with you that Constellation Software is a better investment than the IT consulting companies since it already has a large and sticky customer base, while consulting companies have to get contracts renewed with their clients and compete with each other.
Any thoughts on the payment sector? That sector is also getting beaten down this year like software.
I thought about looking at Fiserv but I don’t know how the industry is going to shake out with a growing number of competitors and the fact it’s easier for them to churn off.
Maybe if you can justify some end state in consumer payments that has good value,
And can justify Fiserv today is just pricing in their institutional business alone (which is way stickier than the consumer retail payments) then there’s some value there?
Every few years there are more entrants into this industry with a new angle and the competitive rivalry keeps going up since the early 2010s
Yeah payments is very competitive. Hard to say who is going to win. Ideal case would be if Visa and Mastercard sold off to < 20x multiple but idk if that will happen.
Fiserv is hard to say. If over the next 2 quarters the management and new new CEO turns around the company and delivers on the $8 EPS guidance for 2026, then maybe it is a good value play. But for now its too hard to say.