Why a Great Company Isn't Always a Great Investmenthttp://www.fool.com/investing/general/2012/12/18/why-a-great-company-isnt-always-a-great-investment.aspx Morgan Housel and Austin Smith
December 18, 2012
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Austin Smith: Morgan, you made a point in an article recently that a great company doesn't always make a great investment. That's a difficult thing for people to understand because we always say, "Buy great companies," but of course you have to buy them at the right price.
So, I'm wondering if you could shed a little bit of light and provide some clarity on that distinction.
Morgan Housel: You just said the point yourself. It's great to buy good companies. You always want to do that, but you have to get them at the right price.
Two examples that I like to use to show why a great company doesn't always make a great investment are Microsoft (NASDAQ: MSFT) in 2000 and Wal-Mart (NYSE: WMT)