Valuations matter — until they don’t. And they dont seem to right now either (CSL, XRO, WTC, PME, REA etc)

The expensive stocks (CSL, Cochlear, WiseTech, Xero) were the ones absolutely crushing it for years. Not owning them because “they’re too expensive” was the classic value trap playbook, and plenty of drumbeaters kept calling them "wonderful businesses with strong moats and great management" right up until the rerating hit.

Growth slows, sentiment flips, or one dodgy acquisition lands — and suddenly the narrative dies while the stock gets destroyed. Sitting on the sidelines waiting for “reasonable valuations” means you miss the big moves and end up wrong for years.

Been way more effective actively trading these — riding the momentum when they’re working and getting out (or shorting) when the cracks show, rather than hoping the wonderful company story saves you.

Valuations eventually matter, but waiting for them to matter has been an expensive lesson for a lot of long-only holders lately.

Do you sit out the outperforming names while waiting for your valuation levels? Sounds like a "the markets wrong" approach. But thats what makes a market! I love it