It's like getting a VIP ticket to a concert, but you only paid for a cheap seat way in the back.

Buying stocks of great companies when they're undervalued is smart because you're getting in on a winning investment at a discounted price. Famous investors like Warren Buffett have built their fortunes by following this strategy. You know Buffett's legendary mantra by heart, of course: "Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble."

By buying in at a lower price, you have the potential to see a big return on your investment as the company grows and becomes more successful.

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Source Fool.com