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Stock Strategist

Morningstar Rating for Stocks Performance Update

We examine the stars and come up with some interesting results.

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In 2005, the stock star rating continued to deliver very respectable performance. We're still ahead of the S&P 500 over all trailing periods on both a time-weighted and a dollar-weighted basis.

Even better, we're gaining significant ground on the equal-weighted S&P 500, which is more analogous to our Buy at 5, Sell at 1 portfolio because both invest an equal dollar amount in each holding regardless of market cap. The equal-weighted S&P has been a tough bogy so far, and I'm pleased that on a time-weighted basis we've widened our lead over the trailing three-year period, and improved our relative performance since inception.

Pat Dorsey does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.