Questions the logic of tech behemoths like Google, Microsoft, and Amazon issuing 30-100 year debt when the future is so uncertain.
Interviewer
Howard Marks
Agrees the debt issuance exemplifies excessive market optimism and credulousness, which makes finding investments that produce excess returns (returns commensurate with risk) difficult.
Asks how to invest in companies tied to promising new technology like AI with any certainty.
Interviewer
Howard Marks
States that AI will affect many more companies than just tech firms. Advises against lending money to AI companies for a fixed return.