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11 Picks for a Less-Stressful Portfolio

We screened our database for low-uncertainty, wide-moat stock picks.

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The market is full of uncertainty these days, with concerns about the ever-increasing unemployment rate and questions about where the economy is headed. What would be nice is more certainty--a clearer picture of where we're headed.

At Morningstar, we rate every stock in our coverage universe along a spectrum of uncertainty, based on the range of possible scenarios we analyze for each firm. (For more on the uncertainty rating, please see the Stock Strategist article "Shedding Light on our Uncertainty Rating".) Now, to be sure, some investors crave uncertain outcomes, and for them we have our very high and extreme uncertainty ratings. But for those who prefer low or medium uncertainty, we have put together a few ideas along those lines.

Using Morningstar's  Premium Stock Screener, we searched for wide-moat, low uncertainty companies with 5-star stocks. What could be more conducive to a reduced-stress portfolio? Companies with durable, long-term competitive advantages with little uncertainty about what results will look like three years from now, trading at a significant discount to our fair value estimate. Sounds like a recipe for stress-free success to us.  Here's what we came up with:

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