Each person has his own strategy.
If you are very long term investor(5-10 yrs), you have to avoid
A…high pe stocks
B…Hot industry
“Truly big return comes when you have both earnings growth and a rising multiple. Ideally, you’d have both working for you.I call these two factors—growth in earnings and a higher multiple on those earnings—the “twin engines” of 100-baggers”.
-from book 100 baggers
So for twin growth of earing and growth of PE, we need to buy stock at low PE ratio.
If you are momentum investor , say 2-3 yrs, you dont need to follow PE ratio at all.
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