Morningstar Magazine - February/March 2014 - (Page 18)

Trends Amazon marries the technology advantages of an Internet company-they offer long tail inventory; they are able to aggregate customers through the Internet. But it has also built a massive logistics network that no one can equal. Our Twitterverse Carl Richards @behaviorgap One tweet investment plan: Buy low-cost, diversified investments. A little every month. Behave for a long time. Dennis Lynch, manager of Morgan Stanley Institutional Growth MSEQX and Morningstar's Domestic-Stock Fund Manager of the Year (10 Questions, Page 10) Coffina's Favorites for New Money Matthew Coffina, CFA, is the editor of the Morningstar StockInvestor newsletter. He manages two portfolios, the Tortoise and the Hare. Both portfolios invest in companies with moats. Of the stocks in his portfolios, Coffina says the following six undervalued names offer investors the best opportunities today. Star Rating Fair Value Estimate ($) Price ($) HCP HCP 4 50.00 36.32 This health-care REIT focuses on long-term triple-net leases. Current dividend yield is 5.8%, and 2.5% to 3.5% annual rent increases should lead to a similar level of dividend growth. Potash Corp POT 3 38.00 32.96 Long-run potash prices are the key source of uncertainty for Potash Corp., but risk/reward tradeoff remains attractive. Novo Nordisk NVO Matt says... 4 222.00 184.76 The company has one of the widest moats in health care. Advantages include manufacturing scale and intellectual property. Enterprise Products Partners EPD 3 73.00 66.30 MLP's broad midstream infrastructure and low cost of capital leave it ideally positioned to pursue organic growth projects. Express Scripts ESRX Exelon EXC 4 5 Data as of Dec. 31, 2013 18 Morningstar February/March 2014 89.00 42.00 70.24 27.39 As employers, governments, and managed-care seek ways to make drug benefits more cost effective, Express Scripts is likely to remain a partner of choice. While I normally try to avoid speculating on commodity prices, I still think Exelon's risk/ reward profile is in our favor. Bill Winterberg CFP @BillWinterberg Is my logic twisted? Advisors depend on referrals because other client acquisition methods are poor or nonexistent.. U.S. Census Bureau @uscensusbureau Almost 1 in 3 Americans were poor at least 2 months from 2009-2011. Frances Coppola @Frances_Coppola Just to remind you, banks are not fund managers. Please don't expect them to "look after your money." Jesse Livermore @Jesse_Livermore Investment self-test: if you had a do-over, would you continue to take the position that you're currently taking, right here, right now? Tadas Viskanta @abnormalreturns My best investment for the next decade: your intellectual, social & emotional capital. Blair H DuQuesnay @BlairHduQuesnay Love that the Morningstar guy says picking best performing mutual funds is a zero sum game. It's about so much more than that. #AICPAPFP

Table of Contents for the Digital Edition of Morningstar Magazine - February/March 2014

Morningstar Magazine - February/March 2014
Letter From the Editor
Preparing for the Next 50 Years
Morningstar Managers of the Year
Fixing the Trust Deficit
Rethinking the Path to Retirement
Same Old, Same Old
Global Briefs
The Economic Implications of an Older World
Banking on Performance
Is the Affordable Care Act Healing Health Care’s Woes?70
Baxter Has a Positive Prognosis
Leading Fidelity’s Charge for RIAs
Our Favorite Mutual Funds
50 Most-Popular Equity ETFs
Undervalued Stocks With Wide Moats
Moving the Goal Post

Morningstar Magazine - February/March 2014