The Best Stocks Feel Uncomfortable to Buy
A lot of people think a stock is “too extended” because it already looks great.
Strong earnings.
Strong sales.
High relative strength.
A friend reached out to me today and said he wished he had bought AGI when I texted him about it back in September 2024. That message is what gave me the idea to share this.
Below is AGI in September 2024, and then where it is today.
Back then, his reaction was reasonable:
“Look at those fundamentals. Solid. And the chart looks good too. But the run must be close to over.”
At the time, it already looked like a leader.
High RS.
Big gains off the prior year.
Multiple quarters of strong earnings and sales.
It felt uncomfortable to chase.
It turned out that discomfort was not a warning sign. It was the price of admission.
This is one of the hardest lessons in stock trading. True leaders often look “too good” far longer than most expect.
That tension between what feels extended and what actually keeps working is where many investors get shaken out early.
The charts below tell most of the story on their own.
