Story-driven investing has been very popular in the last few years in Indonesia Market.

The party lasts as long as the story is delightful, influencers are aggressively promoting the stock and the market-maker actively influence the movement of the stock price.

The danger of this investment style is that it doesn't take into account the valuation level into the calculation. take the example of $ARTO it went up from below IDR2000 to IDR20000 before it goes back to IDR2000, because digital bank business trend was the only one people talked about regardless the valuation level back in that heyday.

the cycle of this herd behavior has continued up until now. people are still chasing and aggressively buying stock with a very engaging story even though the valuation is ridiculously high at 200-300x PE.

But not all stocks that have increased tremendously are bound to decline.

take example:
$CASS is a different and very exceptional case. even though the stock price has increased 950% the past 5 years, CASS now still trades at 11x PE with real operation earnings. This exceptional earnings growth was driven by growth of international flights post-covid, GIAA downsizing especially in international routes , business restructure post $EMTK acquisition.