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Terrific Companies at Terrible Prices

We'd love to own these stocks--if only they were cheaper.

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"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.

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Karen Wallace does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.