Morningstar (MORN) has realized tremendous appreciation in its shares over the last two years hitting a 52-week high last week. At $81 per share investors aren't pricing in the significant long-term headwinds and secular trend within the industry. There is a dearth of information on Morningstar with just one analyst covering it and little research on the company despite it being public since January 2005.
Competition, individual investor trends towards passive investments and ETFs, liability for the information they publish, a decline in the relevancy of their ratings, and a valuation that's in the clouds all create a near perfect storm for investors long the stock.
Morningstar was started in Chicago in 1984 by Joe Mansueto...
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