ROBT - It's Official: The AI Goldrush Is Underway
2024-07-02 06:30:00 ET
Summary
- The AI phenomenon has officially reached the gold rush state.
- I do not see a long list of undervalued non-AI companies.
- The gold rush has room to run.
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Near the end of the dot-com bubble in 2000, my business partner and I stumbled onto the notion that the techs were acting much like a gold rush. Gold was being found in the dot-com world and creating riches, but its passion was producing ever more gold miners with golden dreams.
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Our company had traversed the dot-com craze during the late 1990s, chasing the gold like everyone else. But in early 2000, our valuation models simply could not justify the tech prices... not by a mile.
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A simple truth spoke to us: Never in the history of the US stock markets had an industry grown fast enough, long enough, to justify the prices of most tech and big consumer stocks.
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We decided to cut back on the hottest of the highflyers. It changed our company and our lives forever.