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[Yesterday's] new high list contains seven Extreme Value stocks. I’m proud of what I do, and I believe I’m good at it. But you should always be aware of the difference between being good and riding a bull market.

I just got my latest copy of asset manager/market historian Kevin Tuttle’s 100-year price graph of the Dow Industrials. It shows stocks pushing up against bubble-like valuations, measured in 10-year average price-to-earnings ratios on the S&P 500.

It feels so good to own stocks right now… and that’s usually not a good thing. Be careful out there. Never forget the only thing that determines your return is the price you pay. If you pay a high price, you’ll get a low return. And most stock prices are high today.

I’ve personally sold out entire positions recently, as the market pushed them toward fair value. I imagine you own at least one stock that’s fairly valued or even overvalued. You shouldn’t hold and wait. You should sell. The best investors always buy and sell early. They generally do much better than those who buy and sell late.

Crux Note: The S&A Digest comes free with a subscription to Dan Ferris’ Extreme Value.  The kind of deep-value investing Dan practices is the world’s most proven way to make big gains in individual stocks. To learn more about this world-class service, click here.