Which Stock Has The Lowest Drawdown?
Have you ever wondered which stock has the lowest drawdown?
One candidate is the Canadian company Constellation Software, founded by the eccentric and anonymous Brit Mark Leonard.
Since its public listing in 2007, it has had an incredible ride. A 100,000 investment in 2007 is close to a ten-bagger including the tiny dividends reinvested:
Since its listing, max drawdown has been only 19.9% while it has compounded at almost 15%.
However, we assume that its size (and gravity) means the future returns are lower, though.
Software Constellation goes mostly under the radar, at least until recent years, but we covered the fantastic shareholder letters of Constellation Software written by Mark Leonard.
Constellation has frequently been mentioned as a potential Mini or Baby Berkshire.
What is Constellation software?
Constellation Software is a Canadian diversified software company based in Toronto, Canada.
It was founded in 1995 and is listed on the Toronto Stock Exchange. The company’s business strategy is to acquire software companies and hold them for the long term. It has acquired over 500 businesses since its founding and focuses on vertical market software companies.
Drawdown – what it is
A drawdown in investing and trading refers to the reduction of an account’s capital from its peak to its lowest point. It is a measure of the largest potential loss and is typically expressed as a percentage.
If you want to read more, please click on what is a drawdown in trading and why it’s important.