India Fund Performance Compared to Index -Sensex(in %)
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[+-] Asset Allocation Chart

* Beta version, started on Jan/2010 as an trial. Currently contains very limited data. Read more about this chart in the post

Thursday, December 27, 2007

Finding Firms with an Edge (Moat)

Morningstar's characteristics of identifying the moat of a company - by Pat Dorsey, Director of Stock Analysis, Morningstar.

- Look at the numbers
Return On Invested Capital (ROIC) must exceed Cost Of Capital.

If this is true, then look for one of the following four characteristics which will enable the business to earn the high ROIC in future.
- Structural Characteristics
1. Intangible Asset (like Patent)
2. Low Cost Producer
3. Customer Switching Cost e.g: Oracle
4. Network Effect. e.g: eBay

Watch the Complete Video


Anonymous said...

Hey bro, what exactly is morningstar .. sorry if i sound too uninformed

George said...

Morning star publishes ratings for stocks/funds, portfolio tools, articles, videos......

Anonymous said...

thanks man :)