Attention Bellamy's Australia Ltd (ASX: BAL) and Blackmores Limited (ASX: BKL) shareholders, look away now.
Shortly before midday today, shares of the two companies were riding 9.4% and 10% lower, respectively, despite the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) rallying 1% higher.
For Blackmores shareholders, today's falls are hitting particularly hard because the company's share price is now down more than 21% in a month. Bellamy's is down 4.5%.
However, it's important to take today's share price movements with a pinch of salt because long-term holders are likely sitting on huge gains from their investments in Bellamy's and Blackmores. Respectively, they're up 640% and 324% year over year.
Indeed, it's vital investors focus on buying and holding great businesses at good prices.
For net buyers today, however, while Blackmores and Bellamy's may be great businesses, their current lofty valuations mean long-term investors may be best served in holding out for a more compelling entry point.
