"he net present value of a 93-year-old who is worth a billion dollars is probably worth less then a billion (unless, of course, you are anna Nicole Smith). Whereas the net present value of a smart 23-year-old computer science major in Silicon Valley is a lot higher then her $4000 in savings.

When looking at a person there are growth stocks that are highly volatile and mature stocks that pay dividends. Some people have lots of assets on the books but are stodgy and risk-averse and thus have a low P/E ratio. Other people might have a really high P/E but a really low E.

Henry Ford, before he started Ford Motor Company, was essentially a failure. He tried and failed at numerous businesses. But he still had a high P/E as he was persistent and a good risk.

Obama has a high P/E while Senator Byrd has an extremely low P/E. Some people, like Warren Buffet and Michael Dell and Arnold Schwarzenegger, have had an high P/E ratios all their life -- and those are the people you want to invest in."