Workflow
Is the AI Bubble Bursting? Warren Buffett Warns ‘As Happens in Wall Street All Too Often, What the Wise Do in the Beginning, Fools Do in the End’
Yahoo Finance·2025-10-01 18:00

Group 1 - Warren Buffett emphasizes the cyclical nature of financial bubbles and the tendency for sound investment strategies to become reckless when widely imitated [2][3] - Historical patterns show that initial prudent investment ideas can devolve into speculation as popularity increases, leading to market distortions [3][4] - Examples include mortgage-backed securities, which transitioned from sound risk management to reckless complexity, contributing to the global financial crisis [4] Group 2 - The dot-com bubble serves as another illustration where genuine promise in internet stocks was overshadowed by speculative excesses by the end of the 1990s [4] - Buffett's insights are grounded in decades of experience and a thorough study of past financial crises, including the Great Depression and the 2008 financial crisis [3]