Value investors are often wary about investing in a stock once it has reached a new high, feeling like they are overpaying for a company that might have already priced in most (if not all) of the upside potential that the business may carry. However, choosing to pass on these opportunities creates one of those moments where investors come back a few years later and wish they had bought, even if it represented a premium when the deal was first on the table.
[content-module:CompanyOverview|NYSE:SPOT]What they must realize is that today’s stock market isn’t like the one when the discipline of value investing first floated around for portfolios. When information was slowly spread around different assets, participants had to do the real digging around to find these opportunities. Today, with the advent of information becoming available to nearly everyone, prices move a lot quicker, and information is priced in a lot more aggressively.
