Morningstar's characteristics of identifying the moat of a company - by Pat Dorsey, Director of Stock Analysis, Morningstar.
First,
- 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
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India Fund Performance Compared to Index -Sensex(in %)
* move mouse over the graph to view data on any particular date.
* move mouse over the graph to view data on any particular date.
[+-] 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
* 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)
Posted by George at 3:33 PM
Labels: Investor Education
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3 comments:
Hey bro, what exactly is morningstar .. sorry if i sound too uninformed
http://www.morningstar.com/
Morning star publishes ratings for stocks/funds, portfolio tools, articles, videos......
thanks man :)
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