If everyone agrees with you that a particular stock is the next Microsoft, you are going to have to pay a steep price—which leaves little upside and lots of downside. What you want is to find a stock that no one is looking at or that is out of favor with the big investment funds and is selling at a low price relative to its long-term economic value. Many that have risen shall fall, and many that have fallen shall rise again. This was the battle cry of Warren’s mentor Benjamin Graham.
