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Got $2,000? These 2 Tech Stocks Can Make You a Fortune

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Tech companies are my favourite to invest in. The biggest reason for this would be the fact that my circle of competence happens to fall within this sector. Luckily for me, this is one of the most exciting spaces to invest in, and certainly one of the most lucrative. Of all the possible tech companies to invest in, in Canada, which two should investors be watching right now?

An acquisition giant

The first company that can make you a fortune is actually a fairly large company now. Constellation Software (TSX:CSU) made its name by strategically acquiring strong tech companies. Over time, Constellation built up a very large portfolio of subsidiaries that the company has helped grow into great companies.

Although it’s true that larger companies tend to grow slower than small companies, Constellation is “only” a $32.18 billion market cap. This makes it a large cap company, but still relatively smaller than some of the biggest companies in Canada. The reason I am so bullish on this large cap company is because of its management. President and Chairman of the Board Mark Leonard founded the company in 1995 and is still heavily involved today.

To put Constellation’s amazing growth into perspective, consider this. When the company had its IPO in 2006, shares were valued at $18.30 at close, giving Constellation a market cap of $387.77 million. As of this writing, shares have grown 8,200% over the next 14 years and are now valued at $1,518.58.

Mark Leonard previously wrote annual letters to shareholders. These letters gave updates on the company’s business and acquisitions. In 2017, Leonard announced the he would stop doing so and “only write to shareholders when [he thinks he has] something new and important to communicate.”

This strategy also prevents “copycat companies” from imitating Constellation’s strategy and maintains its competitive advantage in the market. Because of these reasons, Constellation Software should be on every Canadian investor’s watchlist.

A necessary company moving forward

From a large cap company to a small cap, the second company that is sure to make investors a fortune is Docebo (TSX:DCBO). This is a company that I have featured on The Motley Fool quite a bit, so investors should already be familiar with it. For those that are not, the company provides an e-learning platform for enterprises.

As I have stated in previous articles, the company has two very strong tailwinds working in its favour: the COVID-19 pandemic and the fact that many industries around the world are becoming more digital. I will only focus on the latter in this article.

If you look at any industry right now, you will notice that there are companies out there that are helping optimize businesses.  A big part in optimization requires that businesses become more digital. For instance, there are companies that help provide supply chain software and services, automate the due diligence and filing generation process, and those that provide an array of services within the e-commerce and merchant industries.

Docebo is the leader in online enterprise training. It currently has many clients from all around the world. Some of which are large cap companies from the United States and Canada. Since its IPO late last year, Docebo stock has already gained more than 260%. I am confident this company has much more growth to look forward to in the future.

Foolish takeaway

Massive gains in the tech sector are not unheard of. In fact, you do not even need to choose very risky companies. A large company like Constellation Software and a smaller company working in an essential industry like Docebo are examples of companies that can be very rewarding to investors.

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Fool contributor Jed Lloren owns shares of Docebo Inc. The Motley Fool owns shares of and recommends Constellation Software.

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