Forget Crypto Froth: $13B Fund Guru Warns of Bubble, But Says This One Tech Stock is a 'Real Company' Worth Buying Now
Wall Street Titan Sounds Alarm on Market 'Froth,' Yet Goes All-In on Tech Giant
While retail traders chase the dizzying highs of cryptocurrencies and headline-grabbing meme stocks, one legendary investor is sounding the alarm. John Rogers, a titan of Wall Street, sees dangerous signs of "frothiness" and "overenthusiasm" creating a speculative bubble. But here's the twist: he isn't running for the hills. Instead, he's doubling down on one specific tech giant and two other under-the-radar companies.
Rogers, the founder and co-CEO of Ariel Investments—a firm managing a colossal $13 billion in assets—is no stranger to market cycles. Having started his firm in 1983 at just 24 years old, his perspective is seasoned by decades of experience. He points to the "astronomical" valuations of some large-cap growth stocks and the wild speculation around assets like Trump Media's stock as clear evidence that the market is dangerously "getting ahead of itself."
The Surprising Bet on Oracle
Yet, amidst this stark caution, Rogers is unapologetically bullish on one name in particular: Oracle. The enterprise software behemoth recently saw its stock skyrocket in a single day, adding an eye-watering $300 billion to its market value at its peak. While such a massive surge might scare off even the most seasoned value investors, Rogers remains completely unfazed.
Why the confidence? According to the investing guru, who also lends his expertise to the boards of Nike and The New York Times Company, Oracle is the very antithesis of the current market froth. He champions it as a "real company" with a proven, long-term track record of creating "a lot of shareholder value." For Rogers, Oracle's solid fundamentals and established business model make it a safe harbor in a sea of speculation, justifying its valuation even after the historic rally.
A Playbook for a Perilous Market
Beyond the software giant, Rogers has also revealed he is bullish on two other, much smaller companies, signaling that lucrative opportunities still exist for discerning investors who can look past the hype. His strategy offers a clear playbook for navigating today's treacherous market: ignore the noise, sidestep the speculative frenzy, and invest in tangible, value-creating businesses. In a market increasingly dominated by fleeting trends, Rogers' focus on substance over speculation is a powerful lesson every investor needs to hear.
