|
In the short run, the market is a voting machine, but in the long run, it is a weighing machine.
Right now, the market is panicking and voting very negatively against anything it think AI might disrupt.
It’s getting ridiculous if you ask me, but it creates great opportunities!
 |
The Selling Is Overdone
Last week, a a penny stock called Algorhythm Holdings (market cap: about $5M) made a claim.
Until recently, they sold karaoke machines.
They put out a press release about a new AI tool for logistics.
It claims to let fright companies handle 400% more volume without hiring more staff.
What Happened Next Was Total Irrationality
Algorhythm Holdings stock went from $0.85 a share to over $3.50.
 |
Meanwhile, billion dollar trucking companies had their stocks sell off.
C.H. Robinson: down as much as 24% on the day
Landstar Systems: dropped 16%
RXO: 20.5%
JB Hunt Transportation Services and XPO: both about 5%
 |
Billions gone in market cap because the company that formerly made ‘The Singing Machine’ put out a press release about an AI software tool.
Taking Advantage Of Market Irrationality
Panic selling is a great thing for a long-term investor.
It’s gives us the opportunity to buy great businesses at lower prices.
These are the kinds of times Warren Buffett had in mind when he said this:
 |
We’re not buying a trucking company, but we are buying more of a stock that the market thinks AI will disrupt.
It’s down nearly 30% this year alone.
Just recently, the price was hammered another 13% in a single day after Anthropic released a plug-in for Claude.
Here is why the market is wrong, and why we are adding to our position in this Wide Moat compounder.
Paid Partners find out exactly what company we’re adding to.
But I’ll give you some more stats about it:
The current dividend yield is more than double the average of the past 10 years