Know Your Risk Podcast Tech Valuations and Investor Discipline
Feb 25, 2026
They debate soaring tech multiples, software pricing pressures from AI, and risks to roll-up business models. They question crypto’s market value versus utility and China's shift of capital toward industry. They argue for valuation discipline, steel-manning opposing views, and how investing sharpens curiosity, work ethic, and decision-making.
AI Snips
Chapters
Transcript
Episode notes
AI Will Cap Software Moats
- AI will cap software pricing power and pressure margins that made SaaS businesses highly valuable.
- Zach Abraham uses Salesforce as an example: lower prices could cripple their roll-up acquisition model and margin structure.
Pick Investments By Opportunity Cost
- Choose investments by opportunity cost: don’t buy something unless you'd sell another holding to buy it.
- Zach says he won't sell better alternatives to buy marginally attractive tech even after recent drops.
Cheap Relative To Itself Isn’t Always A Bargain
- Valuation is relative: a stock can look 'cheap' vs prior peaks but still be unattractive on growth and earnings multiples.
- Zach and Chase argue Salesforce at ~25x with low growth isn't an obvious bargain despite recent declines.