Billionaire investor Howard Marks lays out why valuing AI companies like Anthropic is so tricky
Source: Business Insider ·
Howard Marks said it's extremely hard to predict what an AI company like Anthropic will be doing or earning in five years' time.
From the source
Howard Marks is the co-founder and co-chairman of Oaktree Capital Management.Christopher Pike/Bloomberg via Getty ImagesBillionaire investor Howard Marks laid out why it's so difficult to value AI businesses.It's hard to predict what a company like Anthropic will be doing or earning in five years, he said.Marks said the AI boom's recent "stumbles" have "somewhat burst the bubble of infallibility."Howard Marks just highlighted one of the hardest parts of investing in AI companies.Value investors like him try to project a company's earnings five years from now to gauge whether a stock is attractively priced today, he said on "Bloomberg: The China Show" on Monday."I don't think we can do that with much of AI," Marks said.He gave the example of Anthropic, the AI company behind Claude that recently filed to go public in what could rank among the biggest IPOs in history."Can we really fool ourselves into thinking we know what it will do five years from now?" Marks asked. "And yet, that…
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