Founder of Oaktree Capital: Rather Than Lending Money to AI-Focused Companies, It's Better to Buy Their Stock

NightAirdropper · 2026-03-22T20:28:33+00:00

Oak Tree Capital founder Howard Marks points out that artificial intelligence makes the world harder to predict. New technologies easily attract investors but often have risks that are underestimated. Block's layoffs exemplify this. He suggests investors should buy AI company stocks rather than borrow to invest.

NightAirdropper

2026-03-22 20:28:33

Abstract generation in progress

Gelonghui March 19 | Howard Marks, co-founder of Oak Tree Capital, stated that artificial intelligence (AI) is making the world more unpredictable than ever before. He pointed out that new things can inspire people’s imagination and are easy to market to the public. However, because they are new, people haven’t yet seen their flaws in practical applications. Historically, there has never been a steel bubble or a hamburger bubble; bubbles tend to occur with new technologies or financial innovations. People rush in based on a promise without fully understanding the downside risks. Marks said that people underestimate AI’s impact, mentioning that last month, Block announced layoffs of 4,000 employees, about half of its total staff. He suggested that instead of lending money to AI-focused companies, investors should buy their stocks.

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