Warren Buffett once said, “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”
What Buffett meant is that while a stock’s current valuation is important, when looking out five to 10 years or more, quality companies with strong earnings growth prospects tend to outperform over the long-term.
That’s why young investors should invest in growth stocks with leadership positions and large addressable growth opportunities, bought at reasonable valuations — and why the following three stocks should be on long-term investors’ buy lists today.
This post originally appeared at The Motley Fool.