Recent research by Montgomery shows that not only are high-quality businesses, running ahead of their intrinsic value. So, too, are the largest names on the ASX, which means long-term investors should approach this market with a degree of caution. Recently, we asked the question: is this problem more acute in respect of high-quality businesses, or is it spread more evenly across the quality spectrum. To try to put some data around this, we did some indicative analysis as follows. We took two portfolios – one an equal weight portfolio comprising of the highest quality companies we can see in our investment universe, and the other a capitalisation weighted portfolio of the largest names in the Index. We estimated the average intrinsic value of each portfolio using an automated valuation tool, at quarterly intervals going back ten years. View the full article for my observations on the results.