This article originally appeared on RealMoney.com on Sept. 5, 2014 at 9:00 a.m. To read more content like this AND see inside Jim Cramer's multi-million dollar portfolio for FREE... Click Here NOW.
If you have a friend whose opinions about certain things -- be it restaurants, vacation spots, hotels or stocks -- you respect, then when this person recommends something, you pay attention. If two friends whose opinions you respect make the same recommendation, then likely your ears will perk up and you will take the recommendation very, very seriously.
To choose stocks, I rely on a number of old friends. Well, they are not personal friends, but they are among the greatest stock pickers in Wall Street's history. These gurus, who include Warren Buffett, David Dreman and Kenneth Fisher, are folks whose approaches to investing I respect and like so much, that I computerized them. This way I can analyze stocks in ways very similar to theirs, and can do so with great speed and accuracy.
Three compelling stock picks have been identified by two of these strategies. One strategy liking a stock enough to give it a high grade is enough for me to recommend it to you. But these picks have the backing of two gurus, which makes them particularly noteworthy.
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All three stocks are favored by my Peter Lynch strategy. The most important variable employed by this strategy is the P/E/G ratio, which is price-to-earnings relative to growth. A P/E/G of up to 1.0 is permissible.