Any thoughts on buy and hold lowest PE ratio mag 7 (rebalance every year)? - Analysis

Rule tested: each year buy the Mag7 stock with the lowest positive year-end trailing P/E from the prior year, hold for 1 year, rebalance annually.

Selections were mostly Apple 2013–2020, then Meta 2021–2024, then Google 2025. Apple’s PE was very low in the 2010s, often around 10–16, and Meta became cheapest after its 2022 crash.

From 2013-2025 this strategy would have yielded average \~27.8% yearly returns in that same period SPY averages at \~14.7%, nearly double SPY returns.