Brookfield is a complex, diversified company operating physical infrastructure and benefiting from AI capex, placed in A or B tier despite its complicated structure.
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Most Investors Own the Wrong AI Stocks (Ranked)
Investing Moats with VarunMay 5, 2026
The creator discusses how AI is impacting various companies, focusing on their moats and competitive positioning. Microsoft is seen as a C-tier player due to execution issues with Copilot, while Google is considered S-tier due to its strong AI cloud and advertising business. Visa and Mastercard are also viewed as S-tier due to their essential role in facilitating transactions, regardless of AI advancements. Constellation Software and Shopify are rated A-tier, recognized for their strong business models and management execution in the evolving software and e-commerce landscapes. The creator discusses several companies, ranking them based on their business moats and AI potential. Shopify is placed in A or B tier, Microsoft in B tier, ASML in A tier (though one creator argues for S tier), Autodesk in B tier, Accenture in D tier, and Brookfield in A or B tier. The discussion touches on competitive advantages, risks like geopolitical tensions and AI disruption, and valuation concerns.
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Workday is mentioned as an example of a SaaS company that could face seat loss due to AI-driven efficiency, impacting renewals.
Accenture is placed in D tier, with concerns that its outsourcing business will evaporate due to AI, despite potential short-term growth.
Adobe is mentioned as a competitor in the creative software space where AI is rapidly advancing.
Autodesk, the dominant software suite for architecture, engineering, and construction (AEC), is considered a B-tier business with sticky software but faces potential disruption from AI.
ASML is a critical bottleneck for AI chip production with a monopolistic position due to its EUV machines, making it an S-tier investment.
American Express is owned by the creator and is considered a facilitator of transactions.
Shopify is an A or B tier company poised to be the de facto player for agentic commerce, with accelerating revenue growth.
Constellation Software is an A-tier business with S-tier management, excelling in capital allocation for mission-critical vertical software.
Mastercard, like Visa, is expected to benefit from agentic commerce and maintain its role in facilitating transactions.
Visa is an S-tier company with an incredibly wide moat, expected to continue facilitating transactions regardless of AI advancements.
Microsoft is rated C-tier due to execution issues with Copilot and reliance on OpenAI, despite having potential S-tier opportunities.