Billionaire investor Howard Marks lays out why valuing AI companies like Anthropic is so tricky

What happened: Howard Marks, co-founder and co-chairman of Oaktree Capital Management, said on "Bloomberg: The China Show" that value investors cannot reliably project AI earnings five years out, citing Anthropic as an example. Key numbers: Nasdaq 100 fell roughly 1,400 points, or nearly 5%, over Thursday and Friday last week. Why it matters: Marks said recent AI "stumbles" have "somewhat burst the bubble of infallibility," and called investor skepticism "very healthy." He said there is "no reward in the investment business for hyperactivity.

Howard Marks, co-founder and co-chairman of Oaktree Capital Management, said on "Bloomberg: The China Show" that value investors cannot reliably project AI earnings five years out, citing Anthropic as an example.

Marks said recent AI "stumbles" have "somewhat burst the bubble of infallibility," and called investor skepticism "very healthy." He said there is "no reward in the investment business for hyperactivity.