The phrase “Perfect 10” doesn’t just apply to bathing beauties. It’s the name of one of my favorite hypothetical stock portfolios. The Perfect 10 Portfolio, which I compile annually, contains ten stocks, each of which sells for ten times the company’s per-share earnings.
Compared to most stocks, these are inexpensive. The average price/earnings ratio for stocks over the years has been about 15. The current average is about 20.
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