Market bubbles are historically predictable events that are driven by excessive investor optimism regarding significant technological advancements.

“The great bubbles always occur around the very most important ideas. So, the railroads, everyone could see that it would change the world. And everyone wanted to put their money in, and everybody put their money in. They over invested, and even though the railroads were a spectacularly powerful idea”

AI is currently experiencing a speculative bubble driven by uncritical groupthink and an unsustainable level of vendor financing.

“So the market, if you will, chases the narrative and it chases the narrative uncritically and it doesn't examine the niggling elements of reality, which and that is the nature, I'm afraid that is the nature of a bubble.”

Studying historic market bubbles is an essential practice for investors to avoid falling prey to similar speculative manias in the future.

“I believe that studying the financial bubbles of the past is practically essential to ensuring that we ourselves don't fall prey to one during our investing lifetime.”