Last week the financial press was full of breathless articles about $100 stock prices, as biopharmaceutical company CSL hit $102 per share and these articles were full of speculation as to whether Commonwealth Bank, Macquarie Bank or Cochlear could also join CSL in having a three figure share price. As a former institutional shareholder of both Incitec Pivot and Rio Tinto during their period of having share prices greater than $100, what we saw was missing in these articles was the subsequent performance of stocks that have enjoyed these lofty per share prices. In this week’s piece we are going to look at the performance of past market darlings that have enjoyed a price greater than $100 per share and over-valuation in general.
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