When experience speaks, do well to listen. There are people who are far from financial novices. I just happen to like Warren Buffett, he has been that big motivation to me in terms of proper investment practices. Before getting to him, let me talk about another financial behemoth. I am talking of the likes of Jeff Bezoz. He recently voiced out that artificial intelligence is an awaiting bubble. Did you hear that right?
Maybe, just maybe, one would say Mr Jeff is outdated when it comes to tech trends. technology has been on a fast pace; I hope you still recall the dotcom bubble was still a technology. So what was his entire idea? FOMO (many big companies are buying positions to avoid missing out on an assumed market.
We can't doubt that many things surrounding AI currently are future promises. Yet many don't want to take chances of missing out. Maybe most of it is human greed; just trying to make sure one doesn't miss out on the Next phase of the world's trillionaires.
source
It is worth monitoring anyway, what climbs too fast when collapsing is always notable. One of such shouldn't be the fall of AI, Enough assets will be flushed off. Or maybe to properly put, transferred in a painfully professional way. He pointed at the fast growth of a private company like OpenAi which has hit 500 billion. When did it come to the picture?
It has even surpassed Elon Musk and his SpaceX team. Is such indeed worth noting. Without doubt it should, if these promises don't surface soonest, there may likely be pullbacks; a last in suffering situation is what we will be looking at here.
Many really trust in the future of AI, as it stands, even private shareholders are not willing to sell even in such a time of many bidders. It shows something, maybe this is the long awaited trillion dollars industry.
Mr. Jeff wasn't arguing, he pointed out that there will first be a correction before a growth. Technology according to him will have a downturn moment before it is then fit for use. If AI should flop, we are looking at an ALL time market crash.
source
So what's the take home here from Jeff Bezos, trade with care. Don't put your eggs in one basket, every tech is likely to have repair moments, we saw Bitcoin fall to below 17k after it's first all time high.
Another thing to consider is, could this be a strategy by Jeff and his team to slow down the market for them to take their position? I hope you know all I am saying here is not your sure financial advice, I am not even done advising myself.
Another person to also look at here is Warren Buffett, he has avoided all the entertainment that has been happening in the crypto space and well I guess AI also. I read one recent article where he said, a good investor should not waste his time investing in projects that solve hard problems.
He is a big financial voice speaking here. One of the men I would love to sit at their fit to learn investment is WB.
His fact here is drawn from one of his investment principles; ‘don't fight the dragon, avoid it’. It has paid off for WB and his Berkshire Hathaway team. After going through that article, it has been something I have had to reflect on; the easiest way to make wealth is investing on straight forward assets rather that cross fingers and wait for probabilities in the complex problem solving industry. It is likely to flop or produce a poor long term results.
To conclude, let me add, it is worth considering as we continue to see tech moving at a faster pace. Many are coming with promises of handling the complex economic, geographical and financial challenge. We have to admit, AI and crypto are all here. I can see why WB avoided the entire industry. This doesn't mean that his rules stand true in every situation anyway.
Nevertheless, one needs to be financially gallant to see long term gains in a world where everything is NOW open for investment. Promises are NOW here and there and many are buy into the FOMO
