Looking for Low-Cost Outliers

Sir John Templeton did it. Warren Buffett, back in the 1950s and 1960s, did it. Benjamin Graham, the father of value investing, advocated it. And countless others have done it at some point during their investment careers. The idea is simple: Buy beaten-down, trashed stocks that are trading for dollars or pennies, wait for the sentiment to change, and the result could be returns that are multiples of the original investment.

Call this a low-price stock strategy, investment or speculation -- whatever you wish. It's a method that works, it but can be costly. That's why it's best buying a little bit of many low-priced stocks (Templeton bought dozens) and hoping to parlay the winners to make up for the losers and then some. Templeton tripled his money, and Buffett -- well, we know how that worked out....374 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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