Private Credit Is Headed for a Software Shock

Warren Buffett has a great line on how hard it is to pick winners when major industrial change is afoot. “What you really should have done in 1905 or so, when you saw what was going to happen with the auto, is you should have gone short horses,” the Oracle of Omaha once said.

No one knows which firm will ultimately win the artificial intelligence race, but many people have clocked that a lot of enterprise software companies could soon be put out to pasture. If investors aren’t outright betting against the sector, they’re taking money off the table.