# Valuation concerns extend beyond the biggest U.S. tech stocks

Markdown copy of https://realalpha.app/s/valuation-concerns-extend-beyond-the-biggest-u-s-tech-stocks/ on Real Alpha, the best minutes from long interviews with the people building AI. Cite and link the page, not this copy.

- Speaker: [Lyn Alden](https://realalpha.app/people/lyn-alden/) · Lyn Alden is an independent analyst, full-time investor, and author of Broken Money. · Founded an investment research firm and wrote Broken Money, tracing how technology has shaped money through history.
- Host: [Scott Galloway](https://realalpha.app/people/scott-galloway/)
- Host: [Ed Elson](https://realalpha.app/people/ed-elson/)
- Show: Prof G Markets
- Episode: [Searching For Value Outside the U.S. — ft. Lyn Alden | Prof G Markets](https://realalpha.app/v/RTODqYb7bbg/), Mar 20, 2025
- Moment: 48:48 to 51:30 of the episode (3 min), playing on https://realalpha.app/s/valuation-concerns-extend-beyond-the-biggest-u-s-tech-stocks/; the episode from there: https://realalpha.app/v/RTODqYb7bbg/?t=2928

## Quote

> “i've been highlighting the fact that costco has been trading at **60 times earnings**”
> — [Lyn Alden](https://realalpha.app/people/lyn-alden/) at [49:59](https://realalpha.app/v/RTODqYb7bbg/?t=2999) · Prof G Markets

## Takeaways

1. Her portfolio’s recent winners and laggards have shifted.
2. She says Costco is a great company, but its valuation is high.
3. She wants more evidence before treating the rotation as established.

## About this segment

Lyn Alden says she has made no major portfolio changes but is watching whether the rotation continues. Costco’s 60-times-earnings valuation illustrates why she sees expensive stocks beyond tech.

From “Searching For Value Outside the U.S. — ft. Lyn Alden | Prof G Markets”, Mar 20, 2025. [Watch the full episode](https://realalpha.app/v/RTODqYb7bbg/)

## Transcript

Transcribed by machine (Whisper) from the episode’s audio, so a word may be off here and there.

[49:01](https://realalpha.app/v/RTODqYb7bbg/?t=2941) I'd love to just check in on your portfolio. One thing I admire about you, Lynn, is that you make your portfolio public so everyone can see what you're doing and what kinds of investments you're making are there any changes that you've made to your portfolio recently are there any investment themes or theses that you are focused on in 2025 so i haven't made any major decisions but um the parts of the portfolio that are working or not working are certainly um changing so it used to be that the u.s growth stocks were great obviously bitcoin and microstrategy were great um the gold slice has been you know i purposely was kind of a bond bear and and wanted some of that slicing gold which has been a good decision the the part that i mentioned before the anchor has been the international equities and to a lesser extent the u.s kind of dividend stocks you know the u.s

[49:51](https://realalpha.app/v/RTODqYb7bbg/?t=2991) stocks are doing pretty good but they're not the mag 7 for example um and the recent rotation is basically saying that you know there might be some current wake-up on overvaluation among um u.s growth um and a little bit of wake-up on on opportunities elsewhere and one thing i like to point out is that it's not just tech i already focuses on obviously the the tech is popular and expensive but i've been highlighting the fact that costco has been trading at 60 times earnings um and it's a it's a well like a 45 year old retailer i'm not even sure exactly what date but it's a it's a four or five decade old retailer it's a great company i mean their their growth numbers are good um you know i'm very bullish on the underlying company just not at 60 times earnings and there's so there's a there's actually a lot of things like that that are just priced

[50:38](https://realalpha.app/v/RTODqYb7bbg/?t=3038) you know maybe not that extreme but there's a lot of things that are just priced pretty expensively and so i think we're entering the period where that starts to matter um and but because i have been concerned for that for a while i'm already positioned for some of that. And the caveat that is that during, you know, where only U.S. growth mattered, the equity side had a little bit of anchor on it, which lately has turned into a little bit of a booster. And so it's not that I'm making changes, it's that I'm noting things that are happening. And I think my biggest question now is to see if this has follow-through.

[51:10](https://realalpha.app/v/RTODqYb7bbg/?t=3070) Because I mentioned that the rotation has been a very hard call to make. I think this has likes to it, but I do want to see continued evidence that it has likes to it.