RiskReversal Pod Dan Benton's Rules For Tech Investing In 2026
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Mar 4, 2026 Dan Benton, a veteran technology investor and former sell-side analyst now publishing on Substack, shares his new 2026 rules for tech investing. He contrasts old information edges with today’s commoditized data. Conversation highlights secular themes, momentum driven by multi-year revenue acceleration, stock-based comp distorting earnings, AI rotations and crowding, hyperscaler CapEx, and risks around private valuations.
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Why Information Edge No Longer Pays
- Information is now a commodity and no longer a sustainable edge for tech investors.
- Dan Benton explains Reg FD, third-party data, and instant dissemination erased the sell-side information advantage he once had at Goldman Sachs.
Tech Stocks Are Now The Market
- Technology has become the market because the largest companies now dominate indices.
- Benton notes tech rose from ~10% to over 30% of market cap, so Fed moves and macro now meaningfully affect tech performance.
Stock Compensation Masks True Earnings
- Stock-based compensation has reduced reported earnings quality without removing real employee cost.
- Benton highlights dilution, buybacks to offset shares, and that adjusted (non-GAAP) metrics mask true expense trends.
