I am convinced most investors cannot tell the difference between a great stock and a great business. If the share price is hidden and all other information (margins, cash flows, ratios) are given, I'd bet most couldn't pick out the truly exceptional businesses from the mediocre ones. Unfortunately, price does the judgement for most investors. A great stock is one that went up. A great business is one that earns high returns on the capital it employs, can re-invest at those returns for years, and has a sustainable competitive advantage that stops competitors from taking them away. Sometimes, they do overlap. But oftentimes, they don't. Plenty of mediocre businesses have been spectacular stocks for a stretch, carried by a hot sector, a cheap starting valuation or a cycle that happened to turn in their favour. I believe we see are seeing this again today.