Oak Tree Co-Founder: Those Who Stay on the Sidelines for Fear of Risk May Miss Out on the Greatest Investment Opportunity in History

Odaily Odaily reports that legendary investor Howard Marks stated in a podcast that the current market is in a state of prosperity, and it is impossible to determine whether it is irrational. Citing SpaceX's upcoming listing at a valuation of nearly $2 trillion as an example, he noted that it's impossible to calculate a reasonable price for participating in such an IPO.

Howard Marks said that those who are overly cautious will not achieve great things. Investing in tech giants can lead to enormous mistakes or create brilliant successes, while those who stay on the sidelines for fear of risk may miss out on the greatest investment opportunity in history. Traditional industry investors, on the other hand, will not be able to capture epoch-making huge dividends.

Currently, the S&P 500's P/E ratio is about 23 times, higher than the 80-year average of 16 times, but lower than the 32 times during the 2000 internet bubble. When it comes to AI investing, investing in hyperscale tech companies is a low-risk approach. Investing in vertical AI companies like Anthropic and OpenAI carries higher risk but a higher survival rate, while investing in early-stage startups is similar to buying a lottery ticket.