Six of the Best
Portfolios of the six shares with the lowest eight-year naked P/E have shown returns of almost 40% annually since 1975 (mid-mid, annual rebalancing). Many investors will want to base their portfolio selection on other factors as well, such as gearing or management quality, but the naked P/E should be a valuable addition to any investor's armoury of financial statistics.
The current list of the six shares having the lowest eight-year naked P/Es is available at the Interactive Investor website here.
Copyright Dr. Keith Anderson 2010