11–20 of 56 posts
It’s important to keep in mind that railroads, airplanes, and the internet also caused bubbles. Just because of an invention is useful and world changing doesn’t mean it won’t cause a bubble.
Conversely, just because an invention causes a bubble doesn't mean it is useful and world changing.
It’s important to keep in mind that railroads, airplanes, and the internet also caused bubbles. Just because of an invention is useful and world changing doesn’t mean it won’t cause a bubble.
Airlines are a great example - they are everywhere, nobody can imagine life without them, and yet they are yet to make any money ! Maybe they will figure it out before oil runs out on planet Earth.
As for Buffett speach - ther is a specific quote about airlines in it: "If a capitalist had been present at Kitty Hawk back in the early 1900s he should’ve shot Orville Wright"
Yet, thanks to our times, at least one major company appears to be thought-bubbling. It appears to hope (if it's not just window-dressing) that fusion will suddenly appear in the next 2 years ... to avoid driving regional electric rates sky high.
It is widely agreed users are not paying enough to cover the costs of inference. This is what "subscription" plans are. So, many users are losing the companies money. This is not discussed publicly and is covered up for by raises, because there is growth and the hope that at some point the economics could work out. Which remains to be seen. It's a variant on a Ponzi scheme. Investor hope is that at some point someone…
It’s important to keep in mind that railroads, airplanes, and the internet also caused bubbles. Just because of an invention is useful and world changing doesn’t mean it won’t cause a bubble.
Exactly that. There was a very nice talk by Warren Buffett explaining that to business leaders at the height of the dot-com bubble - if I remember correctly it's full text is the introduction to his biography 'The Snowball: Warren Buffett and the Business of Life'. Airlines are a great example - they are everywhere, nobody can imagine life without them, and yet they are yet to make any money ! Maybe they will figure…