Reported 4 months ago
The article discusses how both Costco and Chipotle have seen significant stock price growth due to their successful business models over the past decade but warns investors of the risks associated with high valuations. Drawing a parallel to the Nifty Fifty stocks of the 1970s, it cautions that the current high P/E ratios of Costco and Chipotle may lead to poor stock performance in the future despite steady sales growth. The lesson for investors is to be cautious when buying stocks with extreme earnings ratios to avoid potential losses over the long term.
Source: YAHOO