Legendary US market investor Peter Lynch, known for his successful investment strategies, shares the reason why he does not invest in AI shares, while emphasizing the importance of understanding one’s investments. The AI boom has led the market over the past three years, but Lynch, which achieved an average return of 29.2% until 1990, was content to see from afar. Lynch opens that it does not invest in AI stocks “I have zero AI shares,” Lynch said on the podcast “The Compound and Friends” with investor Josh Brown. “I literally couldn’t express Nvidia about eight months ago,” he said. Since Chatgpt’s launch at the end of 2022, Megacap Tech shares have risen, which on Wall Street asked to wonder if the AI rally reflected the Dot-Com bubble of the late 1990s. When asked if investors had too much in the AI trade, Lynch replied that he had “no idea”. Lynch mentions that he does not have a sufficient understanding of technology to form a well -informed opinion on the optimistic prospects of the market over AI. “I’m the lowest technical man ever,” he said. “I can’t do anything with computers. I just have yellow pads, ‘Lynch added. He chose not to talk about his current portfolio or his preference shares now, referring to Fidelity rules. ‘Know what your own’ Lynch has always emphasized that investors must thoroughly understand the businesses in which they invest, what a fundamental principle is in his book ‘One Up on Wall Street’. “I have this expression:” Know what you own, if you don’t understand what you own is your toast, “Lynch said. He mentioned that people regularly spend hours examining flights to find the best price. But when it comes to investment, he said: “They will put $ 10,000 in a crazy shares they heard on the bus.” Lynch calls the phrase ‘play the market’ ‘horrible’ and ‘dangerous’. Instead, he advised to invest in good businesses and understand their operations in the first innings. Chain continued to extend strongly to international markets. Over time, the federal reserve’s active role sounded. The telecommunications sector has since expanded, Lynch said the leading businesses currently employ about 400,000 workers.
Legendary US market investor Peter Lynch reveals why he does not invest in AI shares. Tip: ‘I couldn’t express nvidia’
