Even good companies should be bought at low P/E ratios. Warren Buffett teaches us to patiently wait for cheap good companies and not chase prices higher.



P/E ratios at entry for Buffett's classic investment cases:

1. 1972 See's Candies: 11.9x
2. 1973 Washington Post: 11.9x
3. 1980 GEICO: approximately 5x
4. 1985 Capital Cities/ABC: 14.4x
5. 1988 Coca-Cola: 13.7x
6. 1990 Wells Fargo: 4.3–6x
7. 2003 PetroChina (H shares): 5x
8. 2008 BYD: 10.2x
9. 2008 Goldman Sachs: 7x
10. 2011 IBM: 13.5x
11. 2016 Apple: 14.7x
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