Some High P/Es That Were Cheap

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It should be remembered that in a few captivating smaller-company growth situations that have revolutionary new product breakthroughs, high P/E ratios can actually be low. Xerox sold for 100 times earnings in 1960—before it advanced 3300% in price (from a split-adjusted price of $5 to $170). Syntex sold for 45 times earnings in July 1963, before it advanced 400%. Genentech was priced at 200 times earnings in the over-the-counter market in early November 1985, and it bolted 300% in the next five months. All had fantastic new products.