Warren Buffett's Warning on A.I.: "Why This 'New Gold Rush' Looks *Exactly* Like 1999 to Me"

Warren Buffett’s Warning on A.I.: Why This “New Gold Rush” Looks Exactly Like 1999
In this talk, Warren Buffett explains that the real danger today isn’t Artificial Intelligence — it’s the speculation surrounding it. Just like the dot-com bubble of 1999, investors are chasing hype, buying companies with no profits, and convincing themselves that “this time is different.”

Buffett points out the striking parallels:

🚨 The Psychology Is the Same as 1999

A revolutionary technology (then the Internet, now A.I.)

Companies worth billions without earning a dime

New “metrics” replacing real profits (then eyeballs, now compute and parameters)

A wave of FOMO pushing people to gamble, not invest

Buffett reminds us that technology can win… while almost every company built around it loses.

Amazon survived — but it still crashed 95% first.

A.I. as a “Moat Killer”

For the first time, Buffett sees a force powerful enough to erode moats themselves:

Low-cost advantage? A.I. can equalize prices instantly.

Switching costs? A.I. assistants could move you from one bank, insurer, or provider in seconds.

Brand loyalty? A.I. can compare all alternatives instantly.

A.I. doesn’t just create opportunity — it destroys old advantages.

So Where Is the Real Opportunity?

Buffett says that in every gold rush, the miners go broke — but the sellers of picks and shovels get rich.

And in the A.I. era, the real “pick and shovel” isn’t a chip company or a model builder.
It’s the one resource every A.I. system must consume:

⚡ Electricity.

A.I. data centers use more power than small cities.
Every model. Every server. Every query.
All must plug into the same wall.

And who controls the wall?

Utility companies — the ultimate Toll Bridge Moat.

Predictable, necessary, and paid by everyone — winners and losers.

Buffett’s 5-Step “Sovereign Strategy” for the Coming Crash

Buffett warns that the A.I. bubble is inflating the entire market — and when it pops, everything will go on sale.
So instead of chasing hype, he tells investors to prepare for the sale of a lifetime:

Don’t speculate. Stay inside your Circle of Competence.

Get to zero debt. You can’t be patient if you’re scared.

Build your War Chest. Cash and T-Bills are ammunition.

Prepare your “Blood in the Streets” shopping list. Wonderful businesses at fair prices.

Wait. Let the bubble burst. Then buy great companies at 50 cents on the dollar.

Buffett says:
“Investing is like baseball — the trick is not swinging at every pitch, but waiting for the perfect one.”

The Real Message

Buffett’s warning isn’t about A.I.
It’s about human behavior.

It’s about resisting greed.
It’s about preparing, not predicting.
It’s about being patient while the crowd is emotional.

Because when the panic comes — and it always does — the patient investor will be ready.

And that’s how you build not just wealth…
but a financial fortress that gives you the one thing money can’t buy:

Peace of mind.

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Stay patient. Stay prepared. Stay sovereign. 💼📈

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