Two things can be true at the same time. The share price can continue to go up whilst the truth remains the stock is overvalued. It comes down to the Warren Buffet approach to buying a piece of the business rather than the stock. If you offered me 100% ownership in a business that will require 25 years of earnings to repay the investment, not for me. I have a feeling this rally is people buying the stock, rather than the business.
CBA listed in 1991, and for 1991 to 2023 the stock was priced around 15 times multiple. Now in the past year its shut up 66% and for what? What's happened in the past 12 months that has changed the way CBA has been valued form 1991-2023?
Bubbles are always like crazy after the fact. But no one ever sees them whilst they are live.
CBA Price at posting:
$144.38 Sentiment: Sell Disclosure: Not Held
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