Morningstar's 90 equity and credit analysts are passionate about investing. Not only do we spend all day examining and evaluating companies as an integral part of our jobs, but many of us also spend time after work investigating companies for our personal portfolios. There's no better endorsement of a company than investing your own money in its stock, or having "skin in the game." So, we decided to ask a few Morningstar analysts to choose one of the top holdings in their personal accounts, and to tell us why they own it.
Morningstar analysts are not allowed to own shares of either the companies they cover, or their direct competitors, because we want to avoid any potential conflicts of interest. We also don't always agree amongst ourselves. Valuation is not an exact science. An analyst who formally covers--but does not own shares of--a given company might think it is fairly valued, while another analyst who owns--but does not cover--the company's shares may be more bullish on its valuation. One thing we all agree on is Morningstar's approach to investing: Look for companies with sustainable competitive advantages, whose shares are trading at a discount to their intrinsic value.
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Matthew Coffina has a position in the following securities mentioned above: EXC, MA. Find out about Morningstar’s editorial policies.