Warren Buffett has said, "It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price." So we shouldn't necessarily wait for bargain-basement prices for stocks -- but it doesn't mean we should pay big premiums for stocks, even if the companies are clearly powerhouses.

It's generally best to aim to buy stocks when they're undervalued, in order to bake in a margin of safety. Even great stocks can drop in value over the short term, especially if they were overpriced. Here, then, are three companies that are looking rather richly valued these days.

Waste Management (NYSE: WM) is the 800-lb. gorilla in the trash and recycling world, describing itself like this: "WM has the largest disposal network and collection fleet in North America, is the largest recycler of post-consumer materials and is the leader in beneficial reuse of landfill gas, with a growing network of renewable natural gas plants and the most gas-to-electricity plants in North America. WM's fleet includes nearly 11,000 natural gas trucks -- the largest heavy-duty natural gas truck fleet of its kind in North America -- where more than half are fueled by renewable natural gas."

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Source Fool.com