Morningstar Catalog 2010/2011 - (Page 24)

24 Investment Research Morningstar Equity Research Insightful investment ideas from independent analysts. ® 3 3 3 Consistent, fundamental methodology for ratings with proven performance Morningstar® Economic Moat Rating gauges a company’s competitive advantages TM monitor and are adding coverage in Asia. We also deliver objective opinions on all companies filing for IPOs in the United States. Our analysts evaluate every stock using a consistent research methodology that identifies a company’s sustainable competitive advantages, its risks, and whether the stock price accurately reflects both. The strong performance of our ratings speaks for itself: The Morningstar® Wide Moat Focus Index has returned more than 14% annualized since its inception in September 2002. This index tracks 20 stocks with a wide Economic Moat SM Rating trading at the most significant discounts to our Fair Value Estimates. Institutional investors extend their internal research capabilities with Morningstar® Institutional Equity Research Services. They engage directly with our analysts via phone, e-mail, and in person to debate valuation assumptions, discuss competitive dynamics, and explore new ideas. For a broader view, they tap our analysts’ expansive industry knowledge to evaluate how companies stack up within their sectors and industries. Conferences and events also give clients the opportunity to interact in person with our analysts and managers of leading public companies. SM Extensive industry research offers context for evaluating companies and sectors Covering nearly 2,000 companies in more than 90 industry groups, Morningstar is one of the largest independent sources for stock analysis in the world. We’ve recently doubled the number of European companies we Economic Moat: The Four Sources of Sustainable Competitive Advantage Competitive Forces Wide Wid N w Narrow None N C pany Profitability Company Profitabil y P fit bilit lity Through our robust web portal, institutional clients access in-depth company research reports, presentations, weekly sector updates and highlights, notes from company manager visits, and more. They can also download our analysts’ interactive and fully populated discounted cash flow models for every company we cover. Advisors find our research easy to read and share with clients. They support their investment decisions and client interactions with our company reports, picks, market perspectives, and market-beating model stock portfolios. Broker/dealers and asset management firms license our research to distribute to their affiliated advisors and investors. We also provide research to third-party websites, as well as through a variety of Morningstar products including Morningstar® Advisor Workstation (see p. 45) and Morningstar® Analyst Research Center (see p. 48). SM SM Moat Sources: Intangible Assets Switching Costs Network Effect Cost Advantage Wide Moat Examples Nike: Universally recognized brand with superior product development. Oracle: Switching from Oracle’s tightly integrated databases could cause massive disruptions. A popular product, but switching costs are low for users. CME Group: Its clearinghouse function keeps volume captive. UPS: Ground delivery network has low marginal costs and high returns on capital. FedEx: The high fixed-cost air express segment is still a large proportion of revenue. Con-way: The trucking industry is very fragmented, making it tough to build scale and dig a moat. Narrow Moat Examples Adidas: Strong brand portfolio, but on a smaller scale and with less price leadership. lululemon athletica: Fad products that depend on the popularity of trends. NYSE Euronext: Equity volume is interchangeable, and competitors have been stealing share. Knight Capital Group: Few network benefits from being an order-taker or market-maker. No Moat Examples TIBCO: High-end software ”plumber” seeing competition from all-in-one solutions. Individual investors access our research reports, ratings, and analyst videos via® (see p. 75). Sign up for a free trial Morningstar Wide Moat Focus Index returns information is as of September 2010 and subject to change. Please visit for detailed index information including current returns.

Table of Contents for the Digital Edition of Morningstar Catalog 2010/2011

Morningstar Catalog 2010/2011
Legg Mason
T. Rowe Price
Raymond James
Morningstar Direct
RBC Global Asset Management (U.S.) Inc.
Morningstar® EnCorr®
CPMS Equity Market Service and CPMS Backtest Service
Morningstar® Workstation
Morningstar® Annuity Research CenterSM
Morningstar Quotes
Alpari (UK) Ltd
Morningstar LIM
Morningstar® QuoteSpeed
Morningstar® Fund Research
Morningstar® Equity Research
Morningstar® ETF Research
Morningstar® Corporate Credit Research
Morningstar Realpoint
Morningstar Associates
Ibbotson Associates
Morningstar Investment Services
Morningstar® Licensed Data
Morningstar® Document Library
Manager Benchmarks
Manager Profiles
Morningstar® Alternative Investment Center
Morningstar® Traded Fund Center
Morningstar® Pension and Endowment Center
Morningstar® Indexes
Morningstar® Equity Licensed Data
Morningstar® Document Research
Morningstar FootnotedPro
Morningstar® Advisor Workstation
Morningstar® Analyst Research Center
Morningstar® Portfolio Builder
Morningstar® Annuity Analyzer
Morningstar® Enterprise Data Management
Morningstar® Site Builder and Licensed Tools
Investor Relations Services
Morningstar® Advisor Websites
Morningstar Office
Labrum Capital Advisors, LLC
Morningstar® Principia
CPMS Model Portfolios
Advisor Professional Development
Morningstar® Newsletter Builder
Financial Charts and Presentations
Ibbotson® SBBI® Classic Yearbook
Corporate Performance Graph Service
Morningstar® Institutional Marketing and Sales Solutions
Morningstar® Investment Profiles and Guides
Morningstar Valuation Services
Ibbotson Valuation Publications
Ibbotson® Cost of Capital Resources Center
Advertising Services
Customer and Employee Incentive Programs®
Global Investing Websites
Morningstar® Investment Research CenterSM
Newsletters and Books

Morningstar Catalog 2010/2011