Jim Cramer loves Twilio (TWLO - Get Report) even though it has an astounding 1,297 forward price-to-earnings ratio based on 2019 earnings estimates, and he also thinks Shopify (SHOP - Get Report) is great despite that stock's 557 2019 forward P/E. How does Jim decide which high-P/E stocks to buy and which to avoid?
Jim used his latest monthly video-conference call Wednesday to unveil the process he uses to pick such "super-high-growth" stocks.
"You have to have the guts to say: "My homework is right, the market is wrong,'" Cramer said. "That's something that's so hard to do that you need an incredible amount of fortitude to pull it off."
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