It’s Different This Time (Maybe)
Updated: Sep 22
08/13/26
By: Robert DiMeo
Amazon just posted blowout earnings fueled by AI innovations. The stock surged and investors cheered. But beneath the celebration lies a deeper question: will the massive investment in AI that we’re seeing by both companies and investors deliver investment results?
History offers a cautionary tale. The Fama-French “investment factor” shows that, in aggregate, companies with the highest Capex tend to underperform over time. Railroads, telecom, broadband… all saw enormous spending, but many investors got crushed.
What makes this time different?
Maybe nothing. Maybe everything.
There can be two truths:
Most dedicated investments in AI infrastructure may never generate attractive returns.
A select few could become generational winners.
So what’s an investor to do?
1️⃣ Make it clinical: Know your specific goals and the returns required to reach them.
2️⃣ Take only the necessary risk: Avoid FOMO. Don’t worry about how others are invested.
3️⃣ Stick with the tried and true: Maintain a broad, thoughtfully diversified portfolio.
Momentum plays can be exciting. But discipline is timeless.
As always, feel free to reach out to any of our professionals at Fiducient Advisors
