Business model is worthy of
a narrow moat rating.
Morningstar awards Lazard
a Narrow Moat rating.
Since Morningstar rates about 1700 stocks altogether, I consider
the Narrow moat rating to be just OK rather than Good, since over half of the stocks that Morningstar rates have positive moat ratings.
But they assign the Wide rating to about 67 % of the stocks in our portfolio and give
a Narrow moat rating to another 28 % (these percentages exclude the few companies in our portfolio that they do not cover).
Not exact matches
As oil prices fell, they downgraded the
rating first to
Narrow and then final to No
Moat as a new analyst picked up coverage.
It said the company has a «strong position in the Asia - Pacific beverages market with the powerful Coca - Cola brand providing it with a relatively stable earnings stream,
narrow economic
moat and medium uncertainty
rating».
You can
narrow the pool of investments down to the point where what's left are the highest probability bets among securities of that type and you get the added benefit (with net net stocks, at any
rate) of outperforming moast
moat - type companies.
They have 3
moat ratings: None,
Narrow, and Wide.
Just 266 stocks have a Wide
moat rating, and another 949 have
Narrow moats.
In order to earn a
narrow or wide
moat rating, a company must have «the prospect of earning above average returns on capital, and some competitive edge that prevents these returns from quickly eroding.»
To meet Morningstar's criteria for index membership, companies must have a Morningstar Economic
Moat rating of
narrow or wide and have a Morningstar Distance to Default score in the top 50 % of eligible dividend - paying companies.