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Last month, Anthony Scaramucci took to social media and shared a video in which he revealed how Warren Buffett's caution in 1999 cost him millions in Amazon.com, Inc. (NASDAQ:AMZN) stock and how he believes today's AI hype is following a similar path of skepticism and missed opportunity.

What Happened: In the video, the former Trump White House communications director and investor opened up about a 1999 encounter with Amazon founder Jeff Bezos, which set the stage for one of the most infamous missed opportunities in investing.

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Scaramucci recalled sitting in the front row at a conference when Bezos presented his vision for Amazon. Despite Amazon being considered “overpriced” at the time and a likely casualty of the dotcom bubble, Bezos laid out a strategic roadmap, explaining how selling books would help the company reverse-engineer the location of warehouses.

“I listened to the whole thing wrote copious notes,” he said, adding that he was poised to buy in. But before he could act, legendary investor Buffett took the stage.

The founder of SkyBridge Capital recalled saying that Buffett called Bezos a “wonderful young man” and praised Amazon being worth more than Sears, Roebuck and Co. However, the Oracle of Omaha then listed reasons why one shouldn't invest in Amazon. 

“I’m a disciple of Warren Buffett. I ripped up my notes, threw them in the garbage,” Scaramucci stated, reminiscing about the time.

Sears, Roebuck and Co. filed for bankruptcy in 2018, and Amazon’s market capitalization today stands at a staggering $2.025 trillion, making it the fourth most valuable company globally. 

“If you [had] put $10,000 into Amazon on the day that Jeff Bezos made that presentation 26 years ago, it's worth $16.5 million as of this morning,” Scaramucci reflected. “You would have had to go through eight periods of time where Amazon dropped 50% one period of time where it actually dropped 90%. You just had to hold it.”

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Scaramucci drew a direct comparison to today’s AI hype, likening it to the skepticism faced by Amazon in its early days. He believes that, just like with Amazon, the current AI boom will face volatility and skepticism but ultimately reward those who back it early.

“We are in 1996 for AI, and I think that there’s going to be a lot of volatility and a lot of uncertainty and a lot of nay saying, but I am buying things,” he stated.

Why It Matters: Previously, Buffett also admitted his mistake about Amazon's potential. “I was too dumb to realize,” he famously said, even calling himself an “idiot” for passing on the investment.

Buffett has also repeatedly praised Bezos, calling him a visionary with rare clarity. In 2016, the legendary investor stated, “You’re not going to find another Jeff Bezos.”

Buffett’s investment regrets extend beyond Amazon. He has acknowledged missing early opportunities in both Google and Microsoft. At a Berkshire Hathaway annual meeting, he candidly referred to these oversights as “stupid mistakes.”

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This article Anthony Scaramucci Says 26 Years Ago Warren Buffett's Amazon Caution Cost Him Millions: Former Trump Official Sees Today's AI Hype As History Repeating originally appeared on Benzinga.com