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Motley Fool Money

Looking for value… in growth. April 10, 2026

·1 hr 12 min·5 clips
Why buying a stock after it has gone up 5x can be a lower-risk move than buying it cheap.
The episode begins with hosts Scott Phillips and Andrew Page joking about personal reform and a meme about being wrong. They quickly dive into the core topic: the investor psychology around buying stocks when prices are rising versus falling. Phillips notes that people often want assets cheaper but become more interested as prices go up, which is counterintuitive. Page admits his natural bias is to look for bargains in downturns but struggles to buy stocks that are appreciating, even when business fundamentals improve. They use the example of Echo IQ, a company whose stock rose 5x as it progressed from development to commercialization, illustrating how risk can decrease even as price increases. The hosts discuss the concept of 'averaging up'—buying more of a winning stock at higher prices—and why it's difficult but often wise. They touch on the survivorship bias of microcap stocks and the importance of risk-adjusted returns. A tangent compares investing to gambling, highlighting that both involve probabilistic thinking, though investing has a positive expected outcome. Phillips shares a personal story about miscalculating the oil mix for his boat's engine, underscoring human error. The conversation shifts to market reactions, critiquing a 3% ASX surge based on a short-lived geopolitical ceasefire announcement as an example of short-term market myopia. They advise listeners to ignore daily volatility and focus on long-term business prospects. The hosts also define terms like 'meme stocks' and 'story stocks,' warning against hype-driven investing. Throughout, they stress the value of independent analysis, margin of safety, and overcoming cognitive biases to build wealth steadily.

As heard by us

A lively case for giving long-term growth more thoughtful room in valuation work.

Motley Fool Money turns a familiar investing tension into a useful question: how can investors notice a company's growth runway before the market has made the story obvious?

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Why you'd press play

Want help valuing a growth story before it feels obvious?

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