One of the Warren Buffett quotes that gets repeated time and time again is that it’s better to buy a wonderful company at a fair price than a fair company at a wonderful price. It’s a useful piece of wisdom, but often gets used by investors to justify whatever it is they want to buy at a moment (using the adage as mere lip service to valuation). Buying Hershey at $109, Brown-Forman at $90, Colgate-Palmolive at $69, or Realty Income at $52 is NOT an example of buying a wonderful company at a fair price. Those are examples of buying excellent companies at 15-25% premiums to what they are worth.
I’m not saying … Read the rest of this article!