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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.

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