Why Google, with a PE of 37, has 80% of its shares held by institutions?

If institutions had the rule to only hold companies with low P/E, they might as well hire kids with down syndrome as traders.
 
Quote from crgarcia:

Doesn't financial institutions frown upon high PE ratios?

At least the very best do (like Warren Buffett).
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GOOG is in the S&P 500 and widely held and held by institutions can mean mutual funds and investment companies and I never heard of such rule about high or low PEs.
 
Quote from switze22:

If institutions had the rule to only hold companies with low P/E, they might as well hire kids with down syndrome as traders.
More...
Not too low PEs, but a mutual fund I know, never buys shares with a PE above 20, its an inviolable internal policy.
 
it's called window dressing. Institutions like to hold the companies that have done the "BEST" so you'll see google 50% return for the year and WE OWN IT... however the catch it that they bought it when it was up 52% and are down 2%... they don't tell you that
 
Quote from crgarcia:

Doesn't financial institutions frown upon high PE ratios?

At least the very best do (like Warren Buffett).
More...
Buffett is not using P/E as far as I know. He recently bought CarMax p/e 22.10 for example. He uses "owner earnings".
 
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