u/ContributionKindly13 ·
Reddit — r/ValueInvesting
· April 19, 2026 at 02:21
· ⬆ 19 pts
· 💬 51 comments
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Summary
The post questions why prominent value investors (e.g., Berkshire, Li Lu) are not actively buying SaaS stocks like ADBE, INTU, CRM, and CNSWF, which have fallen >50% from highs.
The author's thesis is that valuations are now attractive, and the lack of buying from these "superinvestors" is puzzling, warranting an explanation.
Quality assessment: Speculation. The post poses a question based on price action and anecdotal evidence of investor inactivity, not on fundamental analysis.
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SaaS companies such as Adobe (ADBE), Intuit (INTU), Salesforce (CRM), and Constellation Software (CNSWF) have recently fallen more than 50% from their all‑time highs. At these levels, valuations appear far more attractive than they’ve been in years. Yet many well‑known value investors like Berkshire Hathaway, Li Lu, Chris Hohn, and others, have not been buying into the sector. Why is that?
I’m aware that Mohnish Pabrai recently invested in Constellation Software and related companies, and that Chuck Akre has held Constellation and Topicus for a long time. Pabrai has spoken highly of Akre, so his move may have been influenced by Akre’s long‑term success with the company. But outside of these isolated cases, we haven’t seen much buying activity from other major investors. What explains this lack of interest?
Adobe (ADBE) is listed among SaaS companies that have crashed over 50% from all-time highs. The price decline presents a potential entry point for value, yet the absence of famous value investors raises questions about hidden risks. A candidate for a value play, but requires deeper investigation into why "superinvestors" are avoiding it. AI disruption to its creative software suite; competition; possible sustained multiple compression.
Salesforce (CRM) is mentioned as a SaaS company that has fallen more than 50% from its highs, making its valuation appear more attractive. The author implies a potential value opportunity given the significant price decline and the historical success of value investors in similar situations. The stock is worth monitoring due to its depressed price, but the noted lack of buying from major value investors introduces uncertainty. Structural threats to the SaaS business model (e.g., from AI, per comments); prolonged growth slowdown; high valuation even after the drop.
This Reddit post, published April 19, 2026,
features u/ContributionKindly13
discussing ADBE, CRM.
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