Broadcom CEO Hock Tan says many investors are ignoring Warren Buffett's principle of investing only in businesses they understand, treating the market almost like a casino. Speaking in Singapore, as reported by Bloomberg, Tan said many investors have “no clue” what they are buying and hold extreme expectations. The article notes that AI is harder to understand than earlier technology, making Buffett's advice harder to follow, though Tan remains bullish on Broadcom. He warned the industry could run out of capital and that AI profitability will depend on proving its usefulness to businesses, many of which may be “wasting money.” The article's takeaway is to avoid the casino-like aspects of the AI trade rather than the trade itself.
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