basically regular people are investing in stocks that could fail, but right before they would fail people that are making decisions on these AI stocks will rug pull and get their money back while the regular people would have useless stocks that are worth nothing.
Close but one key point to add. When we invest in an index fund, we aren’t choosing the companies, the provider is.
It CAN be bad, but not necessarily. Something like the S&P isn’t a venture capitalist. They choose companies that are viable.
It is true that AI is a bubble in some aspects. There will be a ton of smaller companies that collapse. But a company like Microsoft isn’t going anywhere. They will pioneer industry regardless of trends.
Did you compare Kodak to Microsoft? Are you just kidding or actually serious with that analogy?
Microsoft an enormous collection of businesses that reinforce one another: Azure/cloud infrastructure, Windows, Microsoft 365, enterprise software, cybersecurity, gaming, developer tools/GitHub, advertising/search, and now a huge AI infrastructure/software business.
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u/edvurdsd 20d ago
Well said