Why expensive shares are sometimes the best performers

Ed Bowsher explains when it makes sense to buy ‘expensive’ shares, and highlights two companies that could prove to be very decent investments.

13-11-03-stock-exchange

Pick companies that have already 'won'

I used to be obsessed by the price/earnings (p/e) ratio. If a company had a low p/e ratio, I was immediately tempted to buy.

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Ed Bowsher

Ed has been a private investor since the mid-90s and has worked as a financial journalist since 2000. He's been employed by several investment websites including Citywire, breakingviews and The Motley Fool, where he was UK editor.

 

Ed mainly invests in technology shares, pharmaceuticals and smaller companies. He's also a big fan of investment trusts.

 

Away from work, Ed is a keen theatre goer and loves all things Canadian.

 

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