"The market, like the Lord, helps those who help themselves. But, unlike the Lord, the market does not forgive those who know not what they do. For the investor, a too high purchase price for the stock of an excellent company can undo the effects of a subsequent decade of favorable business developments." --Warren Buffett, from his 1982 chairman's letter
Though delivered with his signature folksy humor, Buffett's point is a critically important: Valuation matters. Even a fantastic company can be a bad investment if you buy it when the price is too high.
Karen Wallace does not own shares in any of the securities mentioned above. Find out about Morningstar's editorial policies.