Jim Cramer's Investing Rule 8: Buy Best-of-Breed Companies

Action Alerts Plus portfolio manager and TheStreet's founder Jim Cramer says that u should always be best of breed -- that means the best company in a particular sector. Watch Rule #8 of his 25 Investing Rules to find out why!
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Action Alerts Plus portfolio manager and TheStreet's founder Jim Cramer has learned a lot over his 30+ years of investing. So he created a list of 25 Rules for Investing that can help you avoid the novice pitfalls that even he fell into on occasion.

And one of them is not buying the best company in a particular sector. 

"We know that a brand, a good brand, signifies reliability." And that happens whne you go shopping all the time - from handbags to cars.

But that mindset often doesn't transfer to the stock market.

Cramer thinks it should.

Rule 8: Buy Best-of-Breed Companies

"I believe that when it comes to price-to-earnings multiple, investing in the more expensive stock is invariably worth it because you get peace of mind."

So watch Cramer talk about Rule #8 above -- and why you too should own the best of breed.

Sign up and watch Jim Cramer's 25 Rules For Investing here!

Watch More of Jim's Rules for Investing: