3 Stocks With Scary Valuations That I’d Avoid Right Now

If you ignore a stock’s valuation when you make a decision to buy it, you could be adding some significant risk to your portfolio. Valuations matter significantly, as buying at inflated prices could limit your future returns. My favorite example of this is Microsoft. Did you know that if you’d held the stock since Jan. 1, 2000 (before the dot-com bubble crashed), your return would be worse than if you’d bought it 16 years later? The stock has risen by 860% since 2016, versus 813% since 2000. I’m not saying you should try to time the market, but in some cases, you’re better off simply avoiding a highly priced stock because buying at elevated levels can limit your returns. You may be better off going with a more reasonably priced growth stock instead.Continue readinghttps://www.fool.com/investing/2025/11/01/3-stocks-with-scary-valuations-that-id-avoid-right/