When the market rewards a company with a high P/E ratio it can be a strong sign of a moat.
P/E Ratios ranked from lowest to highest:
I would love to own each and every one of these companies but as you can see they are pricey. It's important to look for the reason why they are expensive instead of just flat-out rejecting them.
The reason is each one of these companies has a moat over their competition. Everyone says to let your winners run, but when you look at winning stocks they will have a high P/E ratio.
Next time instead of just writing off a company due to a high P/E ratio, try and understand the reasons why the P/E ratio is high and if it will remain so in the future.
I'm not advocating buying any of these companies at their current price, but I also wouldn't be surprised if they all beat the market in the next 10 years.