Heather Brilliant, Elizabeth Collins

Why Moats Matter

• Gebundenes Buch

Produktbeschreibung

Incorporate economic moat analysis for profitable investing
Why Moats Matter is a comprehensive guide to findinggreat companies with economic moats, or competitive advantages.This book explains the investment approach used by Morningstar,Inc., and includes a free trial to Morningstar s Research.

Economic moats-or sustainable competitiveadvantages-protect companies from competitors. Legendaryinvestor Warren Buffett devised the economic moat concept.Morningstar has made it the foundation of a successfulstock-investing philosophy.

Morningstar views investing in the most fundamental sense: ForMorningstar, investing is about holding shares in great businessesfor long periods of time. How can investors tell a great businessfrom a poor one? A great business can fend off competition and earnhigh returns on capital for many years to come. The key to findingthese great companies is identifying economic moats that stem fromat least one of five sources of competitive advantage-costadvantage, intangible assets, switching costs, efficient scale, andnetwork effect. Each source is explored in depth throughout thisbook.

Even better than finding a great business is finding one at agreat price. The stock market affords virtually unlimitedopportunities to track prices and buy or sell securities at anyhour of the day or night. But looking past that noise andunderstanding the value of a business s underlying cash flows isthe key to successful long-term investing. When investors focus ona company s fundamental value relative to its stock price, and notwhere the stock price sits today versus a month ago, a day ago, orfive minutes ago, investors start to think like owners, nottraders. And thinking like an owner will makes readers betterinvestors.

The book provides a fundamental framework for successfullong-term investing. The book helps investors answer two keyquestions: How can investors identify a great business, and whenshould investors buy that business to maximize return?

Using fundamental moat and valuation analysis has led tosuperior risk-adjusted returns and made Morningstar analysts someof the industry s top stock-pickers. In this book, Morningstarshares the ins and outs of its moat-driven investment philosophy,which readers can use to identify great stock picks for their ownportfolios.

Produktdetails

• Verlag: Wiley & Sons
• 1. Auflage
• Seitenzahl: 240
• Erscheinungstermin: 21. Juli 2014
• Englisch
• Abmessung: 235mm x 157mm x 18mm
• Gewicht: 509g
• ISBN-13: 9781118760239
• ISBN-10: 1118760239
• Artikelnr.: 40191900

Autorenporträt

Heather E. Brilliant, CFA Co-Chief Executive Officer Morningstar Australasia Prior to assuming her current role, Brilliant led Morningstar's global equity and corporate credit research teams, consisting of more than 120 analysts, strategists, and directors. Brilliant is a member of the CFA Institute Board of Governors and is a past chair of the CFA Society of Chicago. Elizabeth Collins, CFA Director of Equity Research, North America Morningstar Collins is responsible for leading Morningstar's team of North American-based equity research analysts. She has served as chair of Morningstar's Economic Moat committee, a group of senior members of the equity research team responsible for reviewing all Economic Moat and Moat Trend ratings issued by Morningstar. Morningstar is a leading provider of independent investment research in North America, Europe, Australia, and Asia. We offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. To find out more about Morningstar's approach to stock investing and receive a free trial of our research, visit: www.global.morningstar.com/whymoatsmatter

Inhaltsangabe

Preface ix Acknowledgments xi Chapter 1 Guiding Principles of Morningstar's
Equity Research 1 Question 1: How Can We Identify Which Businesses Are
Great? 2 Question 2: When Is the Best Time to Invest in Great Businesses? 6
Chapter 2 What Makes a Moat? 11 Moat Sources 13 Notes 33 Chapter 3 Why Moat
Trends Matter 35 Contributed by Stephen Ellis, a member of Morningstar's
Economic Moat Committee and head of Financial Services equity research at
Morningstar Moat Trends and Fundamental Performance 37 Five Key
Considerations for Moat Trends 38 Intangibles 41 Cost Advantage 44
Switching Costs 47 Network Effect 51 Efficient Scale 54 Best Practices for
Moat Trend Analysis 57 Chapter 4 How Stewardship Affects Economic Moats 61
Contributed by Todd Wenning, who oversees Morningstar's equity stewardship
methodology Meet Our Stewardship Methodology 62 Drilling Down 63 Chapter 5
Applying Moats to Dividend Investing 81 Contributed by Josh Peters,
director of equity-income strategy for Morningstar and editor of the
Morningstar(r) DividendInvestorSM newsletter Why Dividends Matter 83 Which
Dividends? 87 Chapter 6 The Importance of Valuation 93 Contributed by Joel
Bloomer, Matt Coffina, and Gareth James, members of Morningstar's Moat
Committee and contributors to Morningstar's valuation methodology Valuation
Concepts 95 Cost of Capital and Returns on Capital 96 Morningstar's
Valuation Approach 97 Example: Calculating ROIC 99 Forecasting Future Free
Cash Flows 102 The Morningstar RatingTM for Stocks 106 Fair Value
Uncertainty and Cost of Equity 107 Notes 111 Chapter 7 Do Moat Ratings
Predict Stock Returns? 113 Contributed by Warren Miller, head of
quantitative research at Morningstar Chapter 8 Putting Moat and Valuation
to Work: Portfolio Strategies 121 Wide Moat Focus Index 121 The Tortoise
and Hare Portfolios 124 Chapter 9 Basic Materials 129 Commodity
Manufacturers 130 Commodity Processors 133 Metals and Mining 135 Chapter 10
Consumer 139 Beverages 140 Consumer Products 141 Tobacco 143 Restaurants
144 Retail Defensive 146 Specialty Retail 148 Lodging 149 Notes 151 Chapter
11 Energy 153 Oil and Gas Drilling 154 Oil and Gas Exploration and
Production 156 Oil and Gas Midstream 158 Refining 159 Oil and Gas
Integrateds 161 Engineering Services 163 Chapter 12 Financial Services 167
Banks 168 Capital Markets 170 Credit Services 172 Financial Exchanges 173
Insurance 174 Chapter 13 Healthcare 177 Pharmaceuticals 178 Biotechnology
180 viii Contents Medical Devices 182 Medical Instruments and Supplies 184
Diagnostics and Research 185 Chapter 14 Industrials 187 Railroads 188
Airport Operators 190 Aerospace and Defense 191 Trucking and Marine
Shipping 192 Waste Management 193 Heavy Equipment 195 Diversified
Industrials 197 Chapter 15 Technology 199 Consumer Technology 200
Enterprise Hardware Systems 202 IT Services 203 Semiconductors 205 Software
207 Telecom Services 209 Chapter 16 Utilities 211 Regulated and Diversified
Utilities 212 Independent Power Producers 214 About the Authors 217 Index
221