The best and most successful fund managers never invest based on PE. Most do not even look at it. They analyze the business models. The legendary investors are not "lucky" when they ride the great growth stocks in America's history. Yet the little retail investor gets so bent out of shape when they see this number as if some injustice was done to them. You really have to laugh. You can read posts from the inception of this stock at $1.50 a share split adjusted and they were obsessing over the same nonsense. Many of the greatest stock investments were made in stocks that had a higher PE than AMZN. That's right, investing in companies that had no PE at all. Companies that could not even turn a profit. And no these companies were not start ups either.
"That's right, investing in companies that had no PE at all. Companies that could not even turn a profit. And no these companies were not start ups either.
I've never seen it and I've been around for decades: I know that as WMT grew, they made profits that they reinvested into the company's growth. AMZN just hit the bond market afte qtrs of dwindling profits b/c they had to: those bonds are senior to equity now. 100 billion market caps making pennies is not common it's historical.