After a blistering start to the year, Dogecoin has since fallen back to earth. The cryptocurrency that provided absolutely eye-watering returns for investors this year has given up a significant percentage of its gains of late.
Accordingly, more attention is now being paid to the volatile nature of these digital currencies. For those looking for better, more stable, long-term options, we’ve got you covered.
Well, Constellation’s near-term performance hasn’t been anywhere close to that of most cryptocurrencies. However, over the long term, this technology giant has produced returns of nearly 10,000% since its IPO in 2006. The company went public at $18.30 and closed yesterday at $1,742. Think about those gains for a minute.
Indeed, for a 15-year period, that’s not bad at all. Long-term growth investors ought to be much more enticed with Constellation’s long-term performance than simply with the company’s aggregate returns.
For example, when one looks at Constellation’s long-term chart, one thing is noticeable. The company has seen peaks and valleys. However, the level of volatility with this stock isn’t anywhere near Dogecoin or its crypto peers.
Here’s how Constellation has managed to accomplish this feat.
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Time-tested business model proves fruitful for long-term investors
This technology growth gem has made consistent gains over a very long period of time using the same playbook. Essentially, Constellation has acquired its growth over the years.
Via a series of more than 500 acquisitions, Constellation has consolidated a fragmented software industry. These deals have resulted in massive revenue and cash flow growth over the years. Indeed, it’s important to note that Constellation isn’t only growing fast — it’s doing so profitably.
The thing is, there’s much more opportunity to further consolidate the software space. In fact, thousands of small-cap companies are itching to be acquired right now. Among these, Constellation’s world-renowned M&A team hand-picks the best.
These factors make Constellation a must-own growth stock for those seeking Dogecoin-like, long-term returns with less volatility.
I view Constellation as essentially an incubator on steroids.
The company’s foresight and strategic approach to making acquisitions is among the best in the world. Indeed, this isn’t a company that strikes out often on its opportunities. More often than not, it hits home runs.
Accordingly, long-term investors would be remiss to ignore this company today. Yes, Constellation’s share price has run quite high in recent years. However, that’s for good reason. Those with a long-term approach to investing will do well to consider this name today.
Like this top tech pick? Here are a few more to consider right now:
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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Constellation Software.