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Two "Overvalued" Growth Stocks Worth a Closer Look

By Daniel Sparks - Mar 23, 2014 at 11:00AM

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Tesla and LinkedIn may seem overvalued, but it's companies like these that also often make the best long-term holdings.

Instinctively, it's easy to gravitate toward the "cheap" stocks in the market because they look like the best deals. Cheaper is always better, right? But is this really the best way to invest? After all, many of the best businesses with the most sustainable growth opportunities often trade at meaningful premiums -- companies like Tesla Motors ( TSLA -6.42% ) and LinkedIn ( LNKD.DL ). Do we really want to miss out on opportunities to invest in game-changing disruptors? Further, as Morgan Stanley's lead stock strategist Adam Parker has pointed out, richly-valued growth stocks have actually outperformed the market since 1978.

In the video below, Fool contributor Daniel Sparks highlights the astonishing opportunities facing Tesla and LinkedIn. Despite their pricey valuations, these stocks' impressive stories make these companies worth a closer look.

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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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Stocks Mentioned

LinkedIn Corporation Stock Quote
LinkedIn Corporation
LNKD.DL
Tesla, Inc. Stock Quote
Tesla, Inc.
TSLA
$1,014.97 (-6.42%) $-69.63

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