Excel Energy, a fast-growing electric utility, demonstrates how overpaying can destroy the ability to make money, even with good dividend payers.
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The Stealth Bear Market: What Most Investors Missed (22 Examples) | FAST Graphs
Sep 4, 2026
The creator emphasizes the critical importance of understanding a stock's intrinsic value before investing to avoid overpaying and destroying potential returns. The video uses 22 examples, starting with Accenture, to illustrate how a "stealth bear market" has occurred, where stock prices have diverged significantly from their intrinsic values, leading to negative investor returns despite strong business performance. The core message is that overvaluation is the greatest risk in the stock market.
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Tractor Supply's stock became highly valued, leading to volatility and poor returns, even with poor earnings performance, because investors overpaid.
Super Micro Computer saw investors lose money at an extraordinary rate, despite extraordinary earnings growth, due to the market valuing it at an insane valuation.
SBA Communications, a telecom tower REIT, experienced losses for investors due to overpaying, despite the business growing earnings.
PayPal's popularity in 2020 led to overvaluation, resulting in substantial losses for investors who underestimated the associated risks.
Paychex, despite its consistent premium valuation and double-digit earnings growth, yielded poor returns due to extremely high valuations.
Paycom Software is used as an example of how high valuations can lead to significant losses, even for a company with strong earnings growth.
Nike is presented as an example where overpaying for a popular stock at high multiples resulted in losses despite earnings growth.
Lululemon became overpriced, leading to significant annualized losses for investors despite strong earnings growth, especially when combined with a break in growth.
Constellation Software, a fast-growing company, turned into a significant annualized loss for investors due to extreme PE ratios, despite strong business growth.
