February 5, 2018 WSP Global Inc. is added to our list

WSP Global is added to the list rated Buy at $58.75. Many Canadians may not be familiar with this company. I hope the “Description” cell of the report does a reasonable job of giving an overview of the company.

It’s a growth-by-acquisition company. I have always been agnostic between earnings per share growth from acquisitions versus organic growth. As long as a company is growing earnings per share its intrinsic value should rise. Cash flow or earnings formulas do not ask the source of the earnings, although analysts seem most interested. I am interested in the source to the extent it provides clues as to whether the same pattern can continue in the future. Most of the strongest growing companies that I have analysed over the years have been growth-by-acquisition companies. These include notably Constellation Software, Stantec and Alimentation Couche-Tard.

Of course growing by acquisition is neither a necessary nor a sufficient strategy to insure success.