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On 2026-08-06 @buccocapital claims almost none of these software businesses make…

2026-08-06 · 18:42 UTC ·@buccocapital ·0 min read

Brief

@buccocapital argues software investing is largely speculative: most software companies are unprofitable (per the 2026-08-06 post), easy benchmarking masks deep operational differences, and many investors lack real-world software experience. Layer in AI fearmongering and the sector has seen 50–100% swings every few months, producing big gains or total blowups.

Why it matters

On 2026-08-06 @buccocapital claims almost none of these software businesses make money, so investors are primarily buying 'vibes and the future' rather than current profits.

Key details

  • Easy benchmarking and comparability create the illusion that software firms are similar, while they are in fact 'incredibly different' operationally.
  • Many investors 'have never had a real job' and haven't used most software; combined with AI fearmongering, these stocks have swung 50–100% every couple months, creating large upside or catastrophic downside.
Source evidence

Software investing is so funny because:

  1. Almost none of these businesses make any money, so you’re mostly investing in vibes and the future

  2. It’s incredibly easy to benchmark and compare, which creates the illusion that these businesses are all similar when really they are incredibly different

  3. Many investors have never had a real job, don’t know what software actually does, and have never used almost any of it

Add in some AI fearmongering and these stocks have been whipping up and down literally 50%-100% every couple months

Quite the opportunity (to either make a bunch of money or get your head blown clean off)