March 25, 2013 - Is Your Stock Portfolio Outperforming the S&P 500? - by Morningstar Investment Research
It turns out there is a simple way to generate real wealth in the stock market: Buy quality companies when they are trading on the cheap and hold them until better opportunities arise. Forgive me for stating the obvious. But in a world overloaded with exotic investment vehicles, this common sense approach is often overlooked.
Which is too bad. Because it's got something going for it. It works.
It's this wide-moat investment approach that propelled a down-to-earth Nebraskan to the rank of the world's third-richest man. And it's this same approach that has powered Morningstar StockInvestor's real-money portfolios to cumulative returns over the past 12 years that are nearly triple those of the S&P 500.
That's right, nearly triple. Through bull and bear markets, political turmoil, and the worst financial crisis since the Great Depression, StockInvestor has beaten the S&P 500 by 90 percentage points.
Morningstar StockInvestor is a core holding for every smart investor.
Tortoise vs. Hare: Who wins? You.
Here's how I position StockInvestor's Tortoise and Hare portfolios for consistent outperformance. First, I focus on high-quality core holdings. These are stocks of established companies with "wide moats"--built-in defensive barriers that keep competitors from invading their turf. Second, I only buy these quality companies when they are trading at a discount to their intrinsic value.
But don't take my word for it. Morningstar StockInvestor has a 12-year track record of outperformance to prove the value of our approach.
As a subscriber, you'll hear my rationale for every transaction. You'll follow our real-world performance record. And you'll get a complete blueprint for how to put our proven strategy to work for you, today.
New--Morningstar StockInvestor for iPad lets you go mobile with wide moats. Best of all, it comes free with your subscription.
A Better Return on Your Time.
Like you, I love discovering great new stocks. But unlike most of you, I also have the luxury to spend all day looking for investment opportunities. Even better, I have the assistance of a small army of more than 100 Morningstar analysts: one of the largest, most well-respected groups of independent equity analysts in the world, all following the same wide-moat strategy. Together, we sift through company filings, financial data, and a wealth of other sources to bring you in-depth analysis of business trends and uncover the best high-quality investment opportunities.
It's more than common sense. It's almost an unfair advantage. See how StockInvestor can give you the long-term confidence and perspective you need.