The market is going through an AI-uncertainty induced dislocation. Will AI kill SaaS? Will AI capex ruin Big Tech? Will AI take our jobs?
Current prices aren’t reflecting value, they’re reflecting the collective panic of retail investors, forced liquidations, and algo trading feedback loops.
As humans, we crave certainty. We want to treat the market like an infallible source of truth with a logical explanation for every price change. In times of great uncertainty, however, fear _is_ the reason; logic has left the building.
For a value investor, dislocations are a gift—an opportunity to find and buy great businesses at much lower prices. The gap between price and value is never larger than when the market is driven by fear.
"Imagine how stupid the average person is, and realize half of them are stupider than that.”
Ignore the fear. Ignore the noise. Find the bargains.