With the major indices knocking on the door of new all-time highs, investors may be wondering if it's a bad time to buy stocks. After all, the Nasdaq Composite has nearly doubled over the last five years, and the S 500 is up 73%.

It's been a particularly strong hot streak over the last 16 months or so, with the Nasdaq up over 50% since Dec. 31, 2022, and the S 500 up 32%. And while it's true that stock prices are outpacing earnings growth, that doesn't necessarily mean you should smash the sell button and run for the exits.

Here's an important lesson on how to view a stock's price, and why Microsoft (NASDAQ: MSFT) is a good example of a company that is a great buy despite being worth more now than at any point in its history.

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Source Fool.com