Key insights
- The author argues that fears of AI disruption are overblown for Adobe (ADBE), presenting a bullish case based on value investing principles. They believe the market is offering a discount due to these fears, while AI could actually lower the barrier to entry for aspiring artists, potentially benefiting Adobe. The author views the downside as limited and is grateful for the perceived discount.
Disclaimer: I'm a dumbass.
I think most of the people worried about AI disruption are missing the point of value investing. Washington post was Buffets most famous case study because as the market were worried about digitalisation he believed that this disruption is not going to kill the stock. The market would never hand you a stock with an insane discount without ANY solid valid bear case. My bullish bet on adbe is that the downside is limited AND AI disruption fear is blown out of proportion.
Artists would rather go homeless than use AI, the casual user and the barrier of entry of art was never ADBE user base. Noone learnt Photoshop for a one time picture of trump riding a dolphin, if anything AI would help ADBE lower the barrier of entry for those interested in becoming artists.
Could I be wrong? Absolutely. But let's stop pretending that the bullish case doesn't factor in AI disruption. In fact, I'm grateful for it for such a great discount.
Positions: 217 shares @202