It's OK to Pay More for Quality

On Wednesday, I articulated why paying 20x-25x earnings for a business like Chipotle Mexican Grill (CMG) could constitute an intelligent investment decision. I'm sure some people from the value-investing school will brand me a heretic for saying this, but I'm willing to stand by my opinion. 

When making an investment, I do two things. First, I look at any investment not as owning a three- or four-letter ticker symbol but instead as owning part of a business. Second, I'm looking to pay a price that I calculate to be comfortably below the intrinsic value of a business, what Ben Graham defined as a margin of safety....361 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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