Daily Archives: January 31, 2017


Estee Lauder (EL) Share Purchase – Wonderful Companies Deserve High Valuation Multiples

Those familiar with my investment approach know that one of my key philosophies is to buy shares trading at a Price to Earnings ratio of under 20. Simply put, I do not like to overpay for stocks. It may thus come as a surprise that I purchased shares in the Estee Lauder company (NYSE:EL) whose shares trade at a P/E ratio of 24. No, I have not lost my mind! Neither have I thrown my investment thesis out f the window. Rather, I have bought shares in Estee Lauder due to its high returns on equity (ROE). To understand the concept of Return on Equity, have a look at the […]