Great companies are not a buy at any price even if it feels like it. Phil repeats his concerns about the valuations of very good businesses and asks whether better opportunities now exist in cheaper shares.
When I started my investing career nearly a quarter of a century ago, the prevailing wisdom was that to beat the market and get good results you had to buy cheap stocks. The problem with good stocks is that they were too highly priced and that the expectations of future performance were too rich and might not be met leading to disappointing returns.
The last decade or so has proved exactly the opposite.
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