This is selection bias. You are picking companies that, in retrospect, we all know because they did well.
But most of the companies that people were "investing" in at the time, the ones that drove that PE, were dot coms that went out of business. Like pets.com.
As Warren Buffett warned at the time, every new technology wave results in a similar bubble. People invest because we know that the technology will reshape the future. And we reward the first to the market because we can't imagine that they won't be long-term winners.
But the companies that arise early in a technology bubble, are seldom the ones that survive long-term.
We are witnessing the same today. Most of the current AI leaders, won't be AI leaders in 20 years. So which one will you invest in?
But most of the companies that people were "investing" in at the time, the ones that drove that PE, were dot coms that went out of business. Like pets.com.
As Warren Buffett warned at the time, every new technology wave results in a similar bubble. People invest because we know that the technology will reshape the future. And we reward the first to the market because we can't imagine that they won't be long-term winners.
But the companies that arise early in a technology bubble, are seldom the ones that survive long-term.
We are witnessing the same today. Most of the current AI leaders, won't be AI leaders in 20 years. So which one will you invest in?