25 of 40
BACK NEXT
Buy low, sell high
David Herro
Manager, Oakmark International

I caddied for a stockbroker 30 years ago, from age 12 to 16. He told me never to forget the cardinal rule of investing: Buy low and sell high. Today I rely on a spin-off of that rule: Buy good-quality businesses at low prices, even if it's counter to the crowd, and sell high, even if what you're selling is in vogue.

People these days are buying what's in vogue - energy and emerging markets - but this means those stocks are getting more expensive. Pharmaceuticals, consumer products and financials are the opposite, and the huge valuation differences provide an opportunity for long-term investors.

NEXT: It's hard to exploit a trend

Last updated July 22 2008: 11:27 AM ET
More Galleries
17 cool gadgets that tease the future Smart telescopes, surveillance for dogs, an electric roadster and more from CES 2018. More
These 12 airplane beds let you really sleep on a flight For the price of a premium class ticket, you may just get a space that's comfortable, private, and quiet enough to ensure a good rest. More
CES 2018 kicks off with oddball gadgets The biggest tech show of the year opened with a collection of quirky gadgets. More

Special Offer