One of the simplest ways to beat the market over the long term is to buy high-quality companies when those stocks are out of favor.

Notice I said simple -- but not easy.

That's because a low stock price usually coincides with negative near-term headlines -- perhaps an earnings miss, a cyclical downturn, or skepticism over a new product or acquisition. Yet if you can keep your eye on the big picture, investing in industry leaders amid temporary setbacks is a recipe for outsized returns.

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Source Fool.com