There are two main ways that you can get a fair (or better) price on a stock with a strong growth profile. You can either purchase a stock when the general economy is in a recession, or you can purchase an otherwise fast-growing company during good/ordinary economic times when it is presented with a solvable crisis that makes the stock temporarily cheap.
On August 5, 2014, I gave an example of the latter when I wrote “Target: Blue-Chip Value Investing in Action” in which I discussed how the temporary problem of the hacking scandal led to a slightly distressed stock price that provided a good deal for investors with a 5+ year time horizon. Since that date, Target has delivered 23.37% annual returns compared to 8.00% annual returns from the S&P 500.
Warren Buffett created the fiction of thinking about twenty punch cards that investors are permitted to … Read the rest of this article!