The artificial intelligence race has divided the stock market into two camps. On one side, manufacturers of hardware with their astronomical multipliers. On the other, a multitude of startups, promising to disrupt the market, but for now burning capital.
Investors in search of windfall profits often forget about Warren Buffett's first rule of investing: Never lose money. If you search for an asset that will allow you to participate in the development of technologies of artificial intelligence, but still sleep soundly, Alphabet (GOOG) (GOOGL) looks like the most protected fortress on the market. Yes, this is one of the most expensive companies in the world by capitalization. Possibly, it will not show the fastest multiple growth in short-term perspective. But from the point of view of the balance of risk and sustainability of the business-model, Alphabet today is in a league of its own. And here are the fundamental reasons why.