Is it better to buy 2020’s best or worst ASX shares?

Much has been said about buying last year’s worst performers for their “cheap valuation”, but history shows you might be better off sticking with the winners instead.

This is great news for the Afterpay Ltd (ASX: APT) share price and Fortescue Metals Group Limited (ASX: FMG) share price – and I’ll explain in a moment.

Buying the top performers would run contrary to our tendency to buy low and sell high. After all, the best performing ASX stocks of 2020 are trading on very stretched valuations.

ASX dogs with surprising bite

But buying last year’s dogs is fraught with risks, as I have written about before. It might not feel that way to those who used this strategy in 2019 though.

High-profile Bell Potter trader Richard…