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I’m happy to report that my favourite FTSE 100 growth stock has had a bumpy few years. Why would I want it to struggle? Because it finally gave me the buying opportunity I’d been waiting for.
The company in question is London Stock Exchange Group (LSE: LSEG), which sells financial data, trading and clearing services to global investors. Its shares have powered ahead for years, making them expensive and keeping me on the sidelines.
Big FTSE 100 winner
For a long time, they traded on a lofty price-to-earnings (P/E) ratio of around 35, scaring me away. As a rule, I prefer to buy out-of-favour stocks in the hope of picking them up cheap and benefiting when sentiment turns.
I saw my moment on 10 September and finally jumped in at around £88.90 a share. The London Stock Exchange Group share price had dropped 30% in a year, shrinking the P/E to around 22 times earnings….
