The Contrarian Investor Podcast
AI Stocks Can't Lead the Market Much Longer. Invest Internationally Instead: Dan Rasmussen, Verdad Capital
Feb 21, 2025
Dan Rasmussen, founder of Verdad Capital and author of 'The Humble Investor', dives into the shifting landscape of AI stocks and the need for global diversification. He argues that the high-flying AI stocks are peaking due to rising capital demands, making sustained growth questionable. Instead of solely investing domestically, he highlights the benefits of looking internationally, where valuations are more attractive. Rasmussen also draws intriguing parallels between today's market and historical bubbles, urging humility in investment strategies.
42:22
Episode guests
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- AI stocks are transitioning to capital-intensive operations, threatening their previous high-growth status amid rising operational costs.
- Investors should consider international diversification, as many global stocks offer better value compared to overpriced U.S. tech companies.
Deep dives
Concerns About AI Stock Valuations
AI stocks have been dominant in the financial markets, but concerns arise regarding their future valuations. The increase in capital expenditures for these tech companies signifies a shift from their previously capital-light model to a more intensive and costly investment strategy. This transition could undermine their classification as high-growth stocks, especially as these companies may become even more resource-intensive. Investors need to reassess the sustainability of this growth model and consider whether current valuations accurately reflect the rising operational costs.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
