It is good to see the software companies at least remaining stable and some rising today. But, I have been wondering whether we have to rethink our devotion to CSU and other family members. With this recent fear you have said yourself that AI can actually help software companies and because of the important services they offer, they will not be going away soon.
But, you also said that although they are not going away today maybe some time in the future AI may succeed in replicating their services. So, the question is whether we should start thinking of CSU etc, as no longer the stalwarts that we have always believed them to be. We may begin to think that, although not today, but their days may be numbered and we need to get out before that happens. Wondering how you see this aspect?
Thanks for the great service
CSU et al may not be the 'easy money' they have been for 20 years (the subsidiaries of course less time since they are only newly public). But their strategy is not likely to change (buy cash flow, improve cash flow, repeat). Valuations on acquisitions could move in the right direction for them to increase activity. But certainly things need to be watched much more closely. CSU was never a company we worried about much, for a very long time. Now it is needs to be monitored much more. We have yet to see a negative AI impact in its numbers. This may indeed occur, but our bet is the impact will take time, and won't be as bad as feared, or could even be positive. We do not think customers are just going to automatically switch. But, sentiment is much harder to call, as it is less rationale. So risks may be higher, even at much lower prices.