AXP

The next company is American Express, AXP. It has certainly done much better in the last 5 years than the last two stocks, right ? It has grown by 80% in the last 5 years. It's been bouncing around like a kangaroo for about 2 years now , right?

American Express, one of the best business models in the world. Its client base is also probably one of the best in the world. It is highly profitable, very stable, and has respectable growth.

And so, I like American Express. This is a really good quality company. So I'm buying and accumulating its shares right now and I think it will gain momentum between 2027 and 2030, right?

Next up is "American Express". This stock has been really down this year. It is one of the best companies in the world. The stock is down 16% this year. It is another stock that will take off strongly; once oil prices and interest rates reach their peak, American Express will experience tremendous momentum .

You will suddenly find that the stock price has exceeded the four hundred dollar mark.

Next stock on here would be American Express. And once again, we see a stock whose price correlates with earnings as they all do. There's always going to be volatility and there's no perfection here, but there is soundness, reasonleness.

Now, this is overvaluation, but you don't wouldn't necessarily sell. I wouldn't anyway. But yet, even if I didn't, I could have lost 33% of my money if I panicked and sold out in say March of 2016.

If I bought it in April of 2014, if I got impatient, but had I waited and held on to the stock, I would have had this growth and then I had COVID come and you had a drop in earnings, then I had this huge surge.

But clearly, this stock looks like it's overvalued now. And again, if I go into the forecasting graph, it's not quite as overvalued because earnings are expected to grow at 14%.

So to kind of answer the question, how do you know? You do it through reason and analysis.