Why Google, with a PE of 37, has 80% of its shares held by institutions?

Discussion in 'Stocks' started by crgarcia, Feb 25, 2008.

  1. Doesn't financial institutions frown upon high PE ratios?

    At least the very best do (like Warren Buffett).
  2. If institutions had the rule to only hold companies with low P/E, they might as well hire kids with down syndrome as traders.
  3. GOOG is in the S&P 500 and widely held and held by institutions can mean mutual funds and investment companies and I never heard of such rule about high or low PEs.
  4. Not too low PEs, but a mutual fund I know, never buys shares with a PE above 20, its an inviolable internal policy.
  5. it's called window dressing. Institutions like to hold the companies that have done the "BEST" so you'll see google 50% return for the year and WE OWN IT... however the catch it that they bought it when it was up 52% and are down 2%... they don't tell you that
  6. Bowgett


    Buffett is not using P/E as far as I know. He recently bought CarMax p/e 22.10 for example. He uses "owner earnings".