The old investing adage that you can’t beat the market so just buy index funds misses the point. Warren Buffett, Peter Lynch, and a host of other money managers prove you can beat the stock market.
They don’t approach investing in the same way, but almost all of the most successful big-name investors have a common thread running through their stock picks: find good companies at good prices, and hold for the long-term.
So shadowing the investment decisions of the so-called smart money isn’t a bad idea. Don’t blindly follow their lead but use their stock purchases to help narrow the vast universe of stocks down to a more manageable level.
The three stocks here just got big votes of confidence from some of the best investors in the market. Let’s see why they might have bought the stocks and why you might want to as well.
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