Don't Invest in AI Infrastructure at These Valuations
A great company at a bad price is still a bad investment.
Sheel warns against chasing AI infrastructure companies at their current valuations. The companies might be excellent, but the prices already reflect perfection. When you invest at a valuation that requires everything to go right, your expected return approaches zero even if the company succeeds. The better play is to find the second-order beneficiaries — the companies that will thrive because AI infrastructure works, but whose stock prices don't yet reflect it.
From Episode 457: The Simple Way to Create More Luck, Friends, and Opportunity
Shared by Sheel Mohnot
Related Signals
Ridiculous Margins: How Profit Buys You the Freedom to Ignore Best Practices
When DHH told other founders his margins, they said: 'You mean gross, right?' He meant net.
Nest Egg First, Then Bet on Yourself: A 19-Year-Old's Wealth Strategy After a Big Exit
Put 70% in the S&P, 25% in bonds, keep the rest in Bitcoin and gold — then fund your next company from the pile when you are ready.