AI Stocks vs. the Dot-Com Bubble: Are Investors Paying Too Much?

During their recent episode of the Acquirers Podcast, Travis and Carlisle discussed AI Stocks vs. the Dot-Com Bubble: Are Investors Paying Too Much?. Here’s an excerpt from the episode:

[Tobias] Yeah. I couldn’t agree more. I’m, I love Claude and I use a, I use a ChatGPT and Claude and I have the other, I have a few open as well.
I use Grok, I use Gemini and I have Muse there as well. So I have like a variety of, I’m not as familiar with Muse and Grok and Gemini, but I use open, I use ChatGPT and Claude like all day long. And they’re clearly very powerful tools.

And I’m, I’m still really only scratching the surface, but I’m getting, I’m using for more and more repetitive, systematic tasks that need to be done all the time. And it’s very good at doing those, giving you a report. Claude particularly learns, like you can plug it into various different software packages and use it as the, where previously I had to go and do it.

Now it just does it automatically. It’s incredible from that perspective, but I still don’t pay that much for it. Maybe that just indicates that they can charge a lot more, but it feels like there aren’t a lot of people using it that way.

There’s still like 95% of people don’t use it at all, use the paid versions. They use the free versions. It probably indicates there’s a lot of, their runway is huge.

They’re going to do very well for a long period of time. But I think that the analogy is the early 2000s, late 1990s, early 2000s, the dot-com was clearly game changing for everybody. The internet’s been an incredible burn, but we did get a little bit ahead of ourselves in the first instance.

And we saw that collapse. And then it really took 10 or 15 years for it to become properly integrated into business everywhere. And then we’re now seeing like the dot-com or last five years or so, we’ve seen the impact of the dot-coms as good businesses.

And I think that we’re going to see the same thing with these companies. I think they’re a little bit ahead of themselves in the short instance. I think that it raises some interesting questions though, as an investor, there’s a great line from Morgan Household’s book where he opens the book, where he tells that story about somebody having a similar, Buffett’s famously never invested in technology, but he’s done pretty well.

And he’s been able to do that by investing in things that don’t change. And so there’s a lot of things out there that are like that, that really they’re not going to be impacted by AI at all. You got anything in the book that won’t be impacted by AI?