Theses 11 / 20 WATCH published 05 Apr 2026 · updated 19 July 2026 · v39

Technical Deflation

The cost of building and maintaining software is deflating rapidly, and this deflation extends beyond code generation to verification, testing, and formal methods. Formal verification is converging as a practical discipline — Leanstral and entity/peter-lavigne's work suggest "the big unlock." John: "We don't hand-verify what a compiler produces."

+16.4pp
Basket vs S&P 500since published — the verdict number
Basket absolute+32.0% · 1 instrument
S&P 500 same period+15.6%
Call directionWatch

No directional call — this basket is the thesis’s instrument panel.

InstrumentPriceTodaySince publishedvs SPY90d
IGViShares Software ETF 106.18 -3.5% +32.0% +16.4pp
SPYS&P 500 — benchmark 761.78 -0.7% +15.6%
Basket: Instrument panel: software pricing power as deflation proxy

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When we're wrong

2 theses are currently moving against us — Microsoft Has Lost the Plot, +34.4% since published; The SaaS Apocalypse, +54.7% since published. They stay on the board. We update priors on evidence, not on evidence we went looking for.