Posts  / GOOG  / #POST-235680
REDDIT

Any thoughts on buy and hold lowest PE ratio Mag 7 stock? (backtested)

M
Jul 2, 2026 · 05:03

**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.