There's a simple motto that sums up how to invest: Buy low, sell high. It sounds easy, but it's more difficult in practice.

However, there are ways for investors to maximize their chances of buying low and selling high. One is to hold onto investments for a long time, thus giving the power of compounding more time to work its magic.

Another way is to identify and invest in companies that repurchase a lot of their own shares. Here I'll cover three such companies, and explain why those share buybacks are so useful for investors.

Continue reading

Source Fool.com