From CLUSTERSTOCK: If you want to be a smart investor, you should scour the earth for high-quality companies and then make big bets on them–right? Wrong. You should find high-quality companies that you can buy at low prices. The high-quality part doesn’t do you a bit of good if you pay too much.
Case in point?
Cisco’s a great company, right? Hell, yes. It dominates a rapidly growing industry with a fabulous future, and it has been growing like a weed since the early 1990s. If you bought Cisco in the late 1990s, however, you paid waaaaay too much for it…