Like the next investor, I love a bargain.
Indeed, that's what long-term, Foolish investing is all about. Taking the opportunity to buy those watchlist stocks when they're trading at basement prices – either when they have been too heavily sold off or when their growth potential is underappreciated – and then letting them compound in value over the decades.
While the logic behind this strategy is certainly simple, it can at times be quite tricky.
Firstly, it can be nerve-wracking buying stocks when the rest of the market seems bearish on them – does the market know something that I don't? Then, it can be twice as difficult ignoring stocks when they've been hyped up – sacrificing that near-term potential for the chance to truly capitalise on an ultra-long term prospect.
Legendary investor Warren Buffett summed it up perfectly when he said: "Be fearful when others are greedy and greedy when others are fearful."
That expert advice seems particularly applicable right now, at a time where the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) is creeping back towards a multi-year high. It seems that investors may have become a little greedy on some of Australia's biggest stocks (I'm looking at the big four banks, in particular), making it increasingly difficult to find those bargains.
But I assure you, no matter the overall conditions being experienced by the market, there will always be a bargain to be found somewhere. Times like these require a little extra discipline and persistence, but the results can be just as rewarding.
Coca-Cola Amatil Ltd (ASX: CCL) is one stock trading at an unbelievable price. In fact, it could very well be one of the best blue-chip stocks available to investors right now.
Following a string of profit warnings, the company's shares were sold down to their lowest price since 2009, but a recent company update suggests the worst of it could be over. With a solid dividend yield and promising growth prospects, I believe Coca-Cola Amatil is an exceptional buy today.
Veterinary services provider Greencross Limited (ASX: GXL) is also well worth a look. At $8.40, Greencross' shares have dropped a considerable 22% since their August all-time high.
The company currently controls an estimated 7.5% of the Australian pet industry but is striving for 20% market dominance. With strong earnings growth forecast, now could be an excellent time to give the dog a bone and take a bite of Greencross.
I would also suggest JB Hi-Fi Limited (ASX: JBH) is attractive right now. Like Coca-Cola Amatil, JB Hi-Fi offers an enticing dividend yield and should benefit in the long-term from the roll-out of its new 'HOME' format stores.
