It has often been advocated to avoid any stocks with a high P/E. The common argument is that you would be overpaying for hype stocks. However, overpaying or not depends on how the high P/E stocks behaves in future. For example, if high P/E stocks actually do grow at a rate that is significantly higher than low P/E stocks, then it is arguably justifiable to buy stocks with a high P/E. One real-life ......