Image Source: PixabayEli Lilly (LLY) is truly a force of nature. This thing has gone up literally tens of thousands of percentage points over the span of decades, and it’s precisely the kind of stock which, if held, can turn a middle-class family into a rich one. The trouble is, nobody holds it for that long.
Even looking at more recent history, you could put a ruler on top of your computer monitor and cover all the price action, because it is so tightly confined into an ascending channel.
So, why do people keep buying, especially since this is a well-established drug company with a triple digit P/E ratio? I suppose it’s like how some people are famous simply because they are famous. Eli Lilly goes up simply because it goes up, and it’ll continue to do so until it stops.
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