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
My whirlwind 24 hours in Taiwan as a bridal supermodel Unlike the West, Taiwanese brides-to-be sit for hun sha ?? photo sessions before their actual wedding day. The photos are seen as a status symbol as well as a way to capture the brides' youth and glamor. More
8 startups that'll make your travel experience so much better Here are the new travel apps and services that will make trips easier, less time-consuming, and more fun for the every day business traveler. More
7 'Most American' cars Cars.com says these cars do the most for the American economy. More

Special Offer