Morningstar Advisor - February/March 2010 - 34

Spotlight International Moats Among the more than 2,000 companies Morningstar’s equity analysts cover worldwide, the best have economic moats—competitive advantages that will stand the test of time. These companies will keep competitors at bay for years, allowing them to earn excess returns. Morningstar gives most of these companies a narrow-moat rating. The best of the best earn a wide-moat rating. The map shows where foreign companies that have Morningstar moat ratings are concentrated. The size of the blue circles indicates the number of firms in that country that have moats. (The exact number is listed.) For example, Canada is home to 50 companies with moats. The red interior circle corresponds with the number of wide-moat firms in that country. There are 267 international firms that have moats; 38 of these, listed in the table, possess wide moats. These firms are the highest-quality foreign companies that Morningstar covers. Only four wide-moat stocks—those with 4- or 5-star Morningstar Ratings—are considered undervalued. Most are fairly valued (they carry 3-star ratings) or overvalued (2-star ratings). International Wide-Moat Companies Company Sector Country Morningstar Rating ASX Brambles Telestra Westfield Group Woolworth Anheuser-Busch InBev SA AmBev Bank of Montreal Bank of Nova Scotia Canadian Imperial Bank of Commerce CI Financial Corp IGM Financial Inc. Potash Corporation of Saskatchewan, Inc. Ritchie Bros. Auctioneers, Inc. Royal Bank of Canada Toronto-Dominion Bank Novo Nordisk A/S Essilor International Dassault Systemes SA L’Oreal Sanofi-Aventis Central North Airport Group Pacific Airport Group Southeast Airport Group Svenska Handelsbanken Alcon, Inc. Credit Suisse Group Novartis AG Roche Holding AG UBS AG AstraZeneca PLC British American Tobacco PLC Cadbury PLC Diageo PLC GlaxoSmithKline PLC HSBC Holdings PLC Imperial Tobacco Group PLC SABMiller PLC Financial Services Business Services Telecommunications Financial Services Consumer Services Consumer Goods Consumer Goods Financial Services Financial Services Financial Services Financial Services Financial Services Industrial Materials Business Services Financial Services Financial Services Health Care Health Care Software Consumer Goods Health Care Business Services Business Services Business Services Financial Services Health Care Financial Services Health Care Health Care Financial Services Health Care Consumer Goods Consumer Goods Consumer Goods Health Care Financial Services Consumer Goods Consumer Goods Australia Australia Australia Australia Australia Belgium Brazil Canada Canada Canada Canada Canada Canada Canada Canada Canada Denmark France France France France Mexico Mexico Mexico Sweden Switzerland Switzerland Switzerland Switzerland Switzerland United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom QQQQ QQQ QQQQQ QQQ QQQQQ QQQ QQQ QQQ QQ QQQ QQQ QQQ QQQ QQQ QQQ QQ QQQ QQQ QQQ QQ QQQ QQQ QQ QQQ QQQ QQ QQQ QQQQQ QQQ QQQ QQQ QQQ QQQ QQQ QQQ QQQ QQQ QQQ Get a complete list of all international wide- and narrow-moat stocks to keep on your radar at http://MorningstarAdvisor.com 34 Morningstar Advisor February/March 2010

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Morningstar Advisor - February/March 2010

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