I read a great book called “Devil Take the Hindmost” about financial bubbles and the aftermaths of their implosions.
One of the things it pointed out that I found interesting was that often, even when bubbles pop, the “blue chip assets” of that bubble stay valuable. Even after the infamous tulip bubble popped, the very rarest tulips had decent economic performance. More recently with NFTs, despite having lost quite a bit of value from their peak, assets like Cryptopunks have remained quite pricey.
If you assume we’re in a bubble right now, it’s worth thinking about which assets would be “blue chip”. Maybe the ones backed by solid distribution from other cash flowing products. XAI and Gemini come to mind, both of these companies have entire product suites which have nothing to do with LLMs that will churn on regardless of what happens to the space in general, and both have distribution from those products.
I read a great book called “Devil Take the Hindmost” about financial bubbles and the aftermaths of their implosions.
One of the things it pointed out that I found interesting was that often, even when bubbles pop, the “blue chip assets” of that bubble stay valuable. Even after the infamous tulip bubble popped, the very rarest tulips had decent economic performance. More recently with NFTs, despite having lost quite a bit of value from their peak, assets like Cryptopunks have remained quite pricey.
If you assume we’re in a bubble right now, it’s worth thinking about which assets would be “blue chip”. Maybe the ones backed by solid distribution from other cash flowing products. XAI and Gemini come to mind, both of these companies have entire product suites which have nothing to do with LLMs that will churn on regardless of what happens to the space in general, and both have distribution from those products.