Posted one of these before with a good reaction. Might as well post another one while the sub is sort of dead, plus it's easier to find good advice in these low volume times.
I'll start off. Very very skeptical of software picks as a general rule of thumb. People like to harp on about the major advantages of the sector without showing the 50 companies that burned in a fire to make that one survivor on the stage look sexy.
Yes the US is a service based economy. Yes software is the future (especially as AI + automation are further along). Yes the US has the best quality software and service game in the whole world. Yes the margins are mouth-watering.
But as soon as a CEO mentions potential TAM I run for the hills. Feels like every tech company has got the speech down now so it sounds like you can't lose if you invest in them. Roadmaps are relatively long term and expect picture perfect growth over a decade or two.
This whole post might just be a result of Cathy Woods PTSD who knows. Not to mention you can't find a 10-20 bagger without sifting through piles of shit. I dunno, it seems like a very dynamic sector and moats don't seem as valuable if a competitor can eventually make your product better down the line.
Leave a Reply