Waving the Red Flag on Three Companies
We recently highlighted this trio as Red Flags in Morningstar StockInvestor.
Morningstar StockInvestor, the publication that I edit, may be best known for its Tortoise and Hare model portfolios. These are portfolios that focus on owning companies with wide economic moats, and the "Fat Pitch" strategy that I employ has allowed both portfolios to easily beat the market's performance since their inception in 2001.
A lesser known feature of StockInvestor is Red Flags. In each monthly issue we highlight three companies that we believe investors should be very wary of. The qualities we look for in a company before featuring it in Red Flags are exactly the opposite of the qualities of the stocks owned in the Tortoise and Hare portfolios. Companies that make it to our Red Flags feature tend to have:
Paul Larson does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.
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