Source: 7investing on YouTube
Warren Buffett is widely-credited with characterizing competitive advantages as moats that companies will aggressively build & vigorously defend to protect themselves from attacks by others.
And while the software industry offers many advantages (such as fast growth and quick iteration), it is very difficult to build a moat in this sector. That’s perhaps one of the key reasons for the recent “SaaS-pocalypse”, where many software stocks have sold off due to the emerging threat of AI and technological disruption.
So where do we go from here? Are software stocks now a compelling buying opportunity? Or are these falling knives that have even more downside risk ahead?
On Monday’s (2/26/2026) livestream show, Bastion Fiduciary portfolio manager John Rotonti and I describe how infrastructure providers are emerging as the real winners from AI.
Power, cooling, networking, and other supporting functions are supply-constrained to meet the $3 trillion of AI infrastructure spending that will take place within the next five years.
We discuss the current turnaround taking place in manufacturing spending and why Amphenol, TE Connectivity, and Trane Technologies could be lucrative investment opportunities.
Disclaimer: This video is intended for informational purposes only and does not constitute tax, financial, or legal advice. Investing carries risks, including potential loss of principal. Consult a qualified professional for personalized recommendations and to ensure compliance with applicable tax laws and regulations.