Quote · Excess Returns
The Trillion Dollar Gap | Aswath Damodaran on SpaceX, AI and the Big Market Delusion
Where this was said
The Big Market Delusion and overconfidence in AI investing
At 32:55 · chapter starts 30:49
Overconfident entrepreneurs plus overconfident VCs in a large market equals overreach and correction. ROMO (Regret Over Missing Out) and FOMO are driving SpaceX's inflated pricing. [1] — Aswath Damodaran "Investors who missed Amazon in 1999 are now haunted by that regret (ROMO — Regret Over Missing Out). Combine that with FOMO and a high-prof…" 32:55
Investors who missed Amazon in 1999 are now haunted by that regret (ROMO — Regret Over Missing Out). Combine that with FOMO and a high-profile IPO drought, and you get irrational capital flowing into SpaceX at prices that no fundamental story fully supports. Damodaran coins 'ROMO' to name the psychological force that turns hindsight bias into investment mistakes.
