In March 2000, Cisco was the most valuable company in the world. Investors believed it would underpin the future of the internet, and they were right. The business went on to become a global technology leader.

But there was one problem: the valuation. At the height of the dot-com boom, Cisco traded on a price-to-earnings ratio of more than 200. When the bubble burst, the share price fell almost 90%, and it took 25 years to recover to its previous peak.

Cisco's story is a reminder that even investing in the right company can produce disappointing returns if you pay the wrong price. As excitement around artificial intelligence continues to drive markets today, the same question is worth asking: are investors paying too much for future growth?

In this video, Ollie Matthews explains why valuation matters, how history may be repeating itself, and why he believes opportunities are emerging in a very different part of the market: the HALO trade.

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