"Buy your straw hats in the winter." This adage is a terrific way to illustrate that buying quality stocks when demand is low will pay off when demand is up. As Warren Buffet once said, "Whether we're talking about socks or stocks, I like buying quality merchandise when it is marked down."
Weaker demand for stocks usually means that investors are fearful and will sell high-quality, high-conviction shares at a discount. Maybe you've seen those "Chicken Little" headlines in the news sometimes, warning of trouble to come? That's a clear sign there is fear in the market. But that fear could spell opportunity for the long-term investor if you know where to look.
"Best-in-breed" companies that have massive moats and pay impressive yields are a great place to start, and Amazon (NASDAQ: AMZN) , Intuitive Surgical (NASDAQ: ISRG) , and AbbVie (NYSE: ABBV) are three fantastic examples. Let's take a closer look.
For further details see:
3 No-Brainer Stocks to Buy in a Correction