I certainly admire Jason's immediate acknowledgment of Chipotle's
But his argument of why Chipotle still remains a bullish stock doesn't hold too much weight in my book. If anything, I'm reminded of the age-old saying, "I've already made up my mind, don't confuse me with the facts."
Acknowledging that a company's shares are indeed overvalued yet feeling the need to jump aboard before the train takes off is the epitome of following the crowd to what is popular -- one of the most common investment mistakes that has given way to nearly every speculative bubble in history, from the dot-com blowup to the current real estate shake-out. Another common trait speculative bubbles share? They end in calamity every single time. No exceptions.
Chipotle is an excellently managed company, but as Berkshire Hathaway
Purchasing companies beloved in the past, like Yahoo!
While I sincerely doubt Chipotle will suffer a complete crash and burn, you'd be hard-pressed to squeeze much more juice out of the shares at these prices. Patience, people. The big gains are awarded to those who see opportunity where others see fear.
Don't forget to read the rest of the Duel and vote for a winner.
Fool contributor Morgan Housel owns shares of Berkshire Hathaway, but none of the other shares mentioned in this article. The Motley Fool owns shares of Berkshire Hathaway, which is a Stock Advisor and an Inside Value pick. Morgan appreciates your questions, comments, and complaints. The Fool's disclosure policy is all about investors writing for investors.