Amazon's sky-high valuation
AMZN is a fantastic company that has disrupted one business after another and leveraged technology in places where most businesses didn't even know there were places.
Trouble is, everyone knows it, and has known it since I started watching the stock in the mid-90's. I have watched and watched and never really felt like the stock was a good value - 'priced to perfection' is a good word for what I saw repeatedly over the years. Of course, AMZN has consistently delivered perfection, and that's impressive, but this performance has also raised the stock's valuation to incredibly high levels, making it a poor choice for the value-conscious investor. P/E ratio is currently near 100, where it's been hovering for years. And it just got upgraded by some major opinion-issuing house.
Well, I don't care about the upgrade. A P/E of 100 for any business is too rich for me. "But wait," you say. "AMZN stock has continued to go up. All those times in the last 15 years when you thought about buying the stock and didn't - you were wrong." Yes; yes, I was wrong. And I didn't lose any money being wrong that way, either. All things considered, I think I can live with that.