When great new technologies emerge (dotcom era, industrial revolutions), people get excited and ignore price valuations, buying overpriced stocks in great companies; it is better to buy bad companies at cheap prices than great companies at expensive prices, which creates a boom-bust cycle.

causalpending

Speaker

Ray Dalio

Evidence Quote

this looks very much like 1998 99 to me in a sense... it's better to buy a Bad Company stock in a bad company at a cheap price than it is to buy stock in a great company at an expensive price

Source

Ray Dalio and Salesforce’s Benioff on AI, trade wars and new world orderCNBC International Live
Created: 8/11/2026, 6:48:37 AM

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