NAS:MORN () Also Trade In: Germany

Morningstar Inc $ 162.94 -1.06 (-0.65%)

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Volume:
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Avg Vol (1m):
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Market Cap $:
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Enterprise Value $:
7.27 Bil
P/E (TTM):
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P/B:
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MORN News and Headlines - Morningstar Inc

GuruFocus Articles Total 32
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Cases to demonstrate the worst enemy for investors, and how to tackle it

“I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.”

- Warren Buffett (Trades, Portfolio)

The best-performing mutual fund for the first decade of this century was the CGM Focus Fund. During the ten years covering two recessions, the fund managed to generate an 18% yearly return, compared to the almost flat performance of the S&P 500. That means every dollar at the beginning would turn into more than five dollars in the end.

8335 Views    Steven Chen    2020-03-26 16:12
Fund’s top buy is North Face parent, also boosts Microsoft and Alliance Data

The Parnassus Fund, a fund part of Jerome Dodson (Trades, Portfolio)’s Parnassus Investments, disclosed this week that it established two new positions during fourth-quarter 2019: VF Corp. (VFC) and Morningstar Inc. (MORN). The fund also boosted its holdings of Microsoft Corp. (MSFT) and Alliance Data Systems Corp. (ADS).

While he remains as chairman of Parnassus Investments, Dodson has since given the portfolio management roles for the fund to his partners Robert Klaber and Ian Sexsmith. The fund seeks to invest in out-of-favor companies that have wide economic moat, high-quality management teams and strong growth potential. However, the

361 Views    James Li    2020-01-15 20:19
A moderate risk, cash-rich fintech franchise

Connecticut-based FactSet Research Systems Inc. (FDS) provides financial information and analytic software for investment professionals, including analysts, portfolio managers and investment bankers, at financial institutions worldwide. As of the end of fiscal 2019, the company serves 5,574 clients (defined as “companies with an annual subscription value of $10,000 or more”) and 126,822 users (defined as “individuals accessing FactSet services across all client sites”) – both figures reached new all-time highs – with at least one of its workflow solutions (i.e., Analytics, Research, Content & Technology Solutions and Wealth).

As you may have expected, the company focuses on the installed-base business

553 Views    Steven Chen    2019-12-02 16:37
Sometimes the art of sailing can give an investor a great lesson in trying to reach your investment goals

"We shortened sail in degrees, rolling in the headsail regularly, then taking the main off completely. The ride was exhilarating as the “Gigi” would surf on the long crests, skidding and squirming at breakneck speeds until the wave outpaced her. I have a vivid memory of being picked up by a wave, sinking down into it like an artillery shell into a howitzer, and then firing forward as the wave top overcame the base and started to break. It was madness. I can also recall seeing fish in the wave curls that were higher than we were.” - Sailing

481 Views    Thomas Macpherson    2019-11-27 16:03
A competitive moat is best designed when it give a company both offensive and defensive capabilities.

To the question, what shall we do to be saved in this world? There is no other answer but this: Look to your moat.”

- George Savile, 1st Marquess of Halifax

Perhaps the greatest flaw in the history of castles was thinking moats were a simple defensive tool. Not true! Moats can be both defensive and offensive weapons. In defense, they could be used to force the enemy to attack in a particular spot such as the castle’s most heavily defended area. But a moat might also allow the castle holder to hold one part of the line with fewer

739 Views    Thomas Macpherson    2019-05-28 16:41
Adding stability and downside protection to your portfolio

Stocks and stock index funds, as we saw in the previous chapter of “Index Investing for Dummies,” are the growth component of investment portfolios.

In chapter eight, author Russell Wild turned his attention to bonds and bond index funds, the stabilizers and downside protectors of investment portfolios.

If you had a $100,000 portfolio before the dot-com bust in 2000, how would bonds have made a difference? Wild laid out these scenarios for the 25 months between when the bust began, Aug. 31, 2000, and when in ended on Sept. 30, 2002:

  • 100% in stocks: Ending value $55,880.
  • 60% stocks,
97 Views    Robert Abbott    2019-05-14 19:16
How do the pros and cons of index mutual funds and index exchange-traded funds compare?

There are two ways to invest in index funds, and their advantages and disadvantages are discussed in chapter six of Russell Wild’s book, “Index Investing for Dummies.” Those two ways are mutual funds and exchange-traded funds (ETFs).

Of course, you might try to create your own index fund by buying one or more shares of every stock represented in a market or sub-market of interest. However, that would be very costly and time consuming, and in the end likely wouldn’t mirror the index you’re trying to track.

Mutual funds are the traditional vehicles, and while they have been around for

55 Views    Robert Abbott    2019-05-13 15:47
Illumina Inc. is acquiring Pacific Biosciences for $8 per share in cash. Now trading at just $7.30 a piece, this looks like an attractive arbitrage opportunity

There’s no such thing as a free lunch. That’s especially true when trying to profit using merger arbitrage.

In a yield-starved world, investors have been looking everywhere for easy returns. That’s caused the spreads of many merger deals to narrow considerably. Recently, many merger spreads have turned negative, with investors willing to accept a potential loss in order to roll the dice on a bidding war.

Most multi-billion mergers don’t offer much arbitrage value today, but if you look at more niche corners of the market, especially in the small-cap space, attractive returns can still be had.

Take Pacific Biosciences

115 Views    Ryan Vanzo    2019-04-12 15:18
The benefits of buying wide-moat stocks at below intrinsic valuations

So much of what we do as investors comes down to making good predictions, so can we make better forecasts or estimates by knowing if moats exist and how strong they are?

The writing team behind “Why Moats Matter: The Morningstar Approach to Stock Investing”—contributor Warren Miller, head of quantitative research at Morningstar (MORN), and lead authors Heather Brilliant and Elizabeth Collins—makes this question the focus of chapter seven. The authors wrote, “is it worth precious time to dive deep into the intricacies of the moat framework? In this chapter, we use some simple statistical analysis to examine what our

166 Views    Robert Abbott    2019-04-01 20:59
How to find fair market value and assess degrees of uncertainty for DCF forecasts

Like all good value investors, the analysts at Morningstar (MORN) have an intense interest in the valuation of companies. In their case, it is also integrally connected with economic moats (or lack thereof). That’s the focus of chapter six of “Why Moats Matter: The Morningstar Approach to Stock Investing.”

Value, according to Joel Bloomer, Matt Coffina and Gareth James—all members of Morningstar’s Moat Committee and contributors to its valuation methodology—refers to intrinsic or fair value, not share price. These three contributors, along with lead authors Heather Brilliant and Elizabeth Collins, recognized that markets go too high and too low in

166 Views    Robert Abbott    2019-04-01 19:08
Competitive advantages are dynamic and can be positive, negative or stable

For some of us, corporate moats are static. But for the moat team at Morningstar (MORN), they are dynamic.

In the book “Why Moats Matter: The Morningstar Approach to Stock Investing,” contributor Stephen Ellis, the head of financial services equity research at Morningstar, wrote, “Moat ratings can tell you the width of a company’s current moat, but trend ratings tell you if that moat is holding up well, is getting even stronger, or is in danger of being filled in by a rampaging horde of invaders.”

Ellis, along with lead authors Heather Brilliant and Elizabeth Collins, argue that as corporations

354 Views    Robert Abbott    2019-03-27 21:54
Moats, valuations and margin of safety at Morningstar

In 2014, Morningstar Inc. (MORN), which rates corporate moats, published a book explaining its methods and rationale. Members of the equity research team contributed to “Why Moats Matter: The Morningstar Approach to Stock Investing.”

Lead authors were Heather Brilliant, chartered financial analyst and co-CEO of Morningstar Australasia, and Elizabeth Collins, CFA and director of equity research for Morningstar North America. Other contributors were Joel Bloomer, Matthew Coffina, Stephen Ellis, Gareth James, Warren Miller, Josh Peters and Todd Wenning.

The authors wrote, “We’ve always viewed investing in the most fundamental sense: We want to hold shares in great businesses for long

354 Views    Robert Abbott    2019-03-25 22:23
Value conference speaker contests Bridgewater’s ‘economic recession’ view for 2020

GAMCO Investors Inc. (GBL) Chairman and CEO Mario Gabelli (Trades, Portfolio) said in a CNBC interview on Wednesday that the global economy is expected to stay strong in 2020, countering views made by Bridgewater Associates founder Ray Dalio (Trades, Portfolio).

Gabelli, who will speak at GuruFocus' value conference in May, listed several encouraging reasons for growth in three key markets: the U.S., China and Europe.

Guru challenges view of ‘economic recession’ in 2020

While he pointed out even the International Monetary Fund is predicting “3.6% real growth with slowdown in 2020,” Gabelli underscored

205 Views    James Li    2019-01-24 17:59
Morningstar, Merck on the list

According to the GuruFocus All-in-One Screener, the following stocks have outperformed the Standard & Poor's 500 index over the past 12 months and were bought by gurus during the last quarter.

MarketAxess Holdings Inc. (MKTX) has a market cap of $7.95 billion. It has outperformed the S&P 500 index by 21.3% over the past 12 months.

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Shares are trading with a price-earnings ratio of 51.34. According to the DCF calculator, the stock is overpriced by 82% at $211 per share. It is currently 26.66% above its 52-week low and 5.47% below its 52-week high.

133 Views    Tiziano Frateschi    2018-10-31 20:35
A look at the new current portfolio and sector weightings pages

GuruFocus is pleased to offer a new version of the guru pages for Warren Buffett (Trades, Portfolio) and other top gurus like David Einhorn (Trades, Portfolio), David Tepper (Trades, Portfolio), Bill Ackman (Trades, Portfolio), Carl Icahn (Trades, Portfolio) and Prem Watsa (Trades, Portfolio).

In Part 1, we discussed three key features of Buffett’s new guru page, including the

659 Views    James Li    2018-09-18 21:39
Ferrari and Fiat Chrysler have good profit margins and favorable cash conversion cycles

Mohnish Pabrai (Trades, Portfolio)’s two U.S.-listed holdings, Ferrari NV (RACE) and Fiat Chrysler Automobiles NV (FCAU), offer good profitability potential among top automobile manufacturing companies.

Brief summary of Pabrai’s portfolio and auto manufacturing industry

Pabrai’s public portfolio represents less than 30% of the guru’s total discretionary assets under management, according to his latest ADV filing with the Securities and Exchange Commission. As of March, the portfolio contains two companies: Ferrari and Fiat Chrysler. Both companies operate in the automotive industry, which includes companies engaged in the design, production and marketing of passenger

517 Views    James Li    2018-07-03 21:20
Company reports good earnings but still lags competitors

General Electric Co. (GE), a major diversified industrials company, said on April 20 that first-quarter adjusted earnings per share increased 14% year over year, driven by strong growth in four of its business segments. Despite this, the Boston-based company still lags its competitors, which include 3M Co. (MMM), Honeywell International Inc. (HON) and Emerson Electric Co. (EMR).

Brief summary of earnings

CEO Jeff Flannery said the first quarter represents a key step in the company’s execution plan for 2018. Despite the challenging landscape in the Power industry, GE reported higher segment profit margins in its Aviation, Health Care, Renewable Energy

572 Views    James Li    2018-04-20 19:58
We have revamped the industry overview section

We are pleased to announce we have made major improvements to our industry overview pages.

Background

The industry overview pages provide information on a wide variety of financial metrics, including the median price-earnings ratio, Shiller price-earnings ratio, return on equity and dividend yield. You can access the page through either the Screeners tab or the Market tab, as Figure 1 illustrates.

Figure 1

The Overview page includes a pie chart illustrating the sector weightings. Clicking on one of the sector slices will pull out that piece from the chart. Figure 2

769 Views    James Li    2018-04-10 21:21
The preference for dividends over repurchases among investors and managers

One of my favorite new podcasts is “Invest Like the Best” (found it a few weeks ago, so I am still catching up). The host, Patrick O’Shaughnessy, does an excellent job finding thought-provoking guests across different fields of interest. Back in February, the podcast featured Joe Mansueto, the founder and longtime CEO of Morningstar (MORN).

During the interview, O’Shaughnessy asked Mansueto about his thoughts on dividends and share repurchases. His response, posted below, is what I would like to discuss in this article.

“My preference is repurchases over dividends if the price is

337 Views    The Science of Hitting    2017-04-24 16:12
Valuation reveals an appealing opportunity

When you hear the name Corning (GLW), what else would you possibly think of other than glass?

Corning makes drinking glasses, glass tableware and all sorts of other items made of glass. That said, the company is much more than a boring commodity-based company. In fact, it is a premiere technology materials company that contributes significantly to the smartphone, tablet, laptop and flat-screen television industries. If you own any of these devices, regardless of brand, chances are pretty good that the glass on the screen was produced by Corning. Chances are also pretty good that the images and data transmitted

342 Views    Daniel Seens    2017-03-29 15:00

Headlines Total 188
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2020-05-08 $ 143.12 (0.34%)
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2019-11-27 $ 157.56 (0.5%)
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2019-04-01 $ 128.89 (2.3%)
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Moats Matter: Valuation - GuruFocus.com
2019-03-27 $ 122.38 (-0.54%)
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2019-03-25 $ 121.69 (0.66%)
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2019-01-14 $ 108.01 (-0.82%)
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2018-04-30 $ 108.58 (0.15%)
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Total 188
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