Warren Buffett’s 1979 Warning May Be the Perfect Lesson for Today’s AI Boom, Says Howard Marks: ‘Uncertai
TITLE: Howard Marks Cites Warren Buffett to Navigate Modern Artificial Intelligence Investing
Howard Marks, the co-founder of Oaktree Capital Management, recently released a new investment memo that addresses the rapidly evolving world of artificial intelligence. In the document, which he titled A Layman Thinks About AI, Marks explores the complexities and the often-confusing nature of the current technological surge. He suggests that while the trajectory of AI remains difficult to map out with precision, market participants should resist the urge to stay on the sidelines. According to Marks, the inherent unpredictability of the sector does not justify a complete absence from the industry.
A Layman Thinks about AI
The memo provides a philosophical look at how investors should handle transformative technologies that lack a clear historical precedent. Marks explains that the high level of ambiguity surrounding AI often leads to hesitation among those looking for a safe entry point. However, he argues that waiting for the landscape to become perfectly clear could mean missing out on significant opportunities. To illustrate this point, Marks looks back several decades to find wisdom from one of the most successful investors in history.
Marks concludes his analysis by referencing a specific piece of advice from Warren Buffett that Forbes magazine originally published on Aug. 6, 1979. At that time, the economic environment differed vastly from today, yet the psychological hurdles for investors remained remarkably similar. Buffett wrote during a period of significant economic shifts, and he intended his words to guide those who felt too afraid to act due to market instability.
Uncertainty Is the Friend
In that 1979 Forbes article, Buffett cautioned against the desire to wait for a cheery consensus before making an investment. He noted that by the time the majority of market participants reach a positive agreement, the most favorable prices usually disappear. Buffett famously stated that the future is never clear, and he emphasized that uncertainty actually is the friend of the buyer of long-term values. Marks highlights this specific quote to show that the current lack of clarity in the AI sector does not necessarily provide a reason for fear, but rather a potential advantage for those with a long-term perspective.
Marks designated this 1979 warning as the perfect ending for a memo on AI. By linking the current technological boom to Buffett’
Source: benzinga.com · 2026-11-12