The Financial Post reports in its Thursday edition that the Magnificent Seven tech stocks may be great companies, but saying they are expensive is an understatement. Guest columnist Marius Jongstra writes that price matters, and great companies do not equate to great stocks. The market is highly dependent on the performance of a very narrow base of companies. We have seen this before and it does not end well. The last time was during the 2000 dot-com bubble. However, if one compares today to back then, the response is typically, "But these companies today make money." Then there are the Nifty Fifty from the 1960s. This group of 50 companies were considered strategic "buy and hold forever" picks before their crash in 1973 and ensuing abysmal performance. Many of these companies had valuations similar to what we are seeing with the Magnificent Seven today. Moreover, something stands out about their composition: Many of the "Nifty" tech companies did not survive (Polaroid, Digital Equipment, Burroughs). What is happening with the Magnificent Seven is the same as what happened with the Nifty Fifty -- investors prone to hype will overextrapolate, lose their discipline and give in to the temptation to join the herd.