Oak Capital Co-founder: Those who sit on the sidelines out of fear may miss the greatest investment opportunity in history

Odaily Planet Daily News Legendary investor Howard Marks said on a podcast that the current market is booming, but it is impossible to determine whether this boom is irrational. Citing SpaceX's upcoming IPO at a valuation of nearly $2 trillion as an example, he noted that it is impossible to calculate a reasonable price for participating in such an IPO.

Howard Marks stated that the overly cautious will struggle to achieve great things. Investing in tech giants carries the risk of huge mistakes but also the potential for glorious success. Meanwhile, those who sit on the sidelines out of fear may miss the greatest investment opportunity in history, and investors focused on traditional industries will fail to capture the epoch-making massive 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 seen during the 2000 internet bubble. When it comes to AI investment, investing in hyperscale tech companies is a low-risk approach. Investing in vertical AI companies like Anthropic and OpenAI carries higher risk but offers higher survival rates, while investing in early-stage startups is akin to buying a lottery ticket.