Sometimes, you get what you pay for. The $50-plus sirloin at Gibson's Steakhouse will certainly taste better than the $17 one from Chili's. Bose headphones for $300 provide a better sound experience than the pair you can pick up at Five Below. And yes, there are cheaper alternatives, but nothing gets clothes as white as Clorox bleach (at least in my opinion). If you prize quality, be prepared to pay up for it.
To some extent, the same can be said in investing: Paying up for high-quality companies--those wide-moat stocks with solid competitive advantages that should be able to generate greater returns on invested capital for two decades or more--is often worth it.
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Susan Dziubinski does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.