Bubbles form when narrative overtakes fundamentals. I've seen this play out multiple times over 30+ years — the story gets so compelling that people stop checking valuations, earnings trajectories, or whether the business can actually deliver. Everyone's talking about the vision, nobody's doing the math.

That's when you need to step back. Great businesses deserve premium multiples, but there's always a line. When the excitement drowns out basic financial discipline, that's your signal to size positions carefully or wait for better entry points.