Constellation Software Report updated March 31, 2018

Constellation Software is updated and rated (lower) Sell at Canadian $874. (The report has the price in U.S. dollars because it reports in U.S. dollars). Constellation is a great company and exceptionally well managed. Historically, selling this company has been a mistake. Perhaps it would be a mistake to sell now. But it is trading very high on a P/E basis using adjusted earnings. And growth appears to have slowed somewhat although it is still strong. I’m becoming a bit concerned that they seem to be somewhat aggressive in some of their adjustments to earnings. They have been adjusting the same way for many years and it has not been a problem. Still, any hint at being aggressive in that way always bothers me. I have about 2% of my portfolio in this stock. I intend to sell the portion that is in an RRSP. I am not sure if I will sell the portion that is in a corporate taxable account.