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> but the most experienced trusted folks I know are already repositioning themselves to weather the upcoming storm. Repositioning in what way?

• bluGill 1y ago
  The same way they always do every single year: they re balance their portfolio so they are never heavily invested in any one thing. If you believe in AI and want to bet strongly in it - which some experienced folks do - you take 5% of your portfolio and bet that in AI. The other 95% is invested in a diversified portfolio. There are many inexperienced investors. Anyone can ride a bubble up and make a lot of money. There is no reason to think you can call the top of a bubble (or if there is a bubble!) consistently enough to bet on it.
  • bix6 1y ago
    And what about in the private markets? YCs entire recent cohort was AI alongside many of the “top” firms.
    • bluGill 1y ago
      I'm not 100% sure how YC works, but generally places like that are invested in by people who use it as the risk portion of the portfolio. So you while YC might be 100% in AI, the people behind YC or only 5% in and so it works out. If you have 100% in any company then you are diversified and need to fix your portfolio. It is generally best for a company to specialize in something they do well. It is possible that YC has picked winners because their specialize in this, and thus even though the AI bubble collapses they are okay. Who knows - but this is something specialists can do in some cases