Message Font: Serif | Sans-Serif
No. of Recommendations: 0

Thanks for the reply! It has been a while since I have looked at this board. Didn't Ben Graham say something similar, like anything above 20 times earnings was too high for most investors? What I do not understand is how certain stocks with high P/Es can be considered "bargains." It seems to me that as the price of one of these stocks increases, then any sort of future earnings are diluted by the amount paid for it. In other words, the possible earnings seem inconsequential to the high price.

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.