Investing great Warren Buffett often explains that he only invests in companies he can understand -- companies inside of his "circle of competence." And that's why I want to highlight discount-retailer Dollar General (NYSE: DG) and shoe company Crocs (NASDAQ: CROX) as potential investment opportunities. Both are good buys and, more importantly, both businesses are simple to understand.

Investors don't win any points for complexity. For stock-pickers, what matters is beating the market. And simple ideas like Dollar General and Crocs can do that. Here's how.

Dollar General sells an array of common household items at low prices, and chances are you've shopped at one of its stores at some point. After all, the company just opened its 19,000th location this January, meaning there's at least one location nearby for most people in the U.S. 

Continue reading

Source Fool.com