thread on expert network call with Valsoft exec (created by gemini)
1/10 Is the "Constellation Software" $CSU.TO model dead in the age of AI? 📉
The market has battered VMS stocks, fearing AI upstarts will obliterate legacy software moats.
I reviewed a call with a Portfolio Manager at Valsoft (a key VMS consolidator) to get the ground truth.
Here is the contrarian bullish case for Vertical Market Software. 🧵
2/10 The Bear Case:Investors fear "kids in a garage" in SF will use LLMs to replicate legacy codebases in a weekend, selling it for a fraction of the price.
The Reality:The expert argues this risk is overblown. Why? TAM size and Complexity.Disruptors want to kill Salesforce, not obscure municipal government software or specialized ERPs for Wendy’s franchises.
Oct 7, 2025 • 6 tweets • 2 min read
A few excerpts from a Tegus call w/ former VP at $FOUR
[VP in discussion with Jared]
"With my selling skills, and you are just your genius, we could probably take over some small countries." Jared looked visibly upset. I remember like it was yesterday. He just said to me, "Why, if we worked together, would we only be able to take over small countries?"
EU / Asia payments mkt dominated by banks w/ pricing which is very high - $FOUR / $TOST expansion is dealing with an entirely new business model they haven't in the past
