Not exact matches
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).
Many U.S.
stocks have wide
moats so to
narrow the list I added in a little Graham by focusing on the lowest combination of P / E and P / B ratios.
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.
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.
Just 266
stocks have a Wide
moat rating, and another 949 have
Narrow moats.
And it's something I'm comfortable with because the Hang Seng Index is by many measures under - valued, even though I consider many
stocks in the Hang Seng Index to hold
narrow moats rather than wide
moats.
NOT SURPRISINGLY, WE generally don't find a ton of great long - term
stock ideas in retail and consumer services because most economic
moats for the sector are extremely
narrow, if they exist at all.
Even though both strategies will yield ridiculously good returns, the fact that most of these companies don't have extremely durable
moats means that just in case you're holding on these
stocks while the
stock market is entering a bear market, these companies might not survive the bear market due to
narrow or no
moats, or they will drop in value much more due to being in small to medium cap.