Leave it to the Big Aristotle, Rick Munarriz, to say it out loud: Being a pig ain't all bad.
4 Words That Will Make You Poor
Munarriz is one of my favorite market writers, and he declares that holding great stocks for the long, long term is the best approach. I think that's true most of the time with truly sound growth stocks. His best examples, RIMM and GOOG, are undeniable. I don't think using Warren Buffett as a role model works in this day and age, not for growth but definitely for wealth preservation and slow growth.
Munarriz notes that a high P/E for a big growth stock "is not expensive." Well, I beg to differ slightly. A high P/E is proof of an expensive stock. But sometimes paying higher yields greater rewards, so I'm not gonna deceive myself by thinking that any stock is cheap when its P/E is above 30. I just want the growth and dominant position of the Co. That's why BIDU was expensive, but a good, calculated risk at 93. (Not that I bought at that price.)
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