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Investing Specialists

Our Ultimate Stock-Pickers' Top 10 High-Conviction Purchases

Several funds see value in industrials and financial services; Berkshire Hathaway sells airlines stock.

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For roughly the past decade, our primary goal with the Ultimate Stock-Pickers concept has been to uncover investment ideas that reflect the most recent transactions of our Ultimate Stock-Pickers in a timely enough manner for investors to get some value from them. In cross-checking the most current valuation work and opinions of Morningstar’s own cadre of stock analysts against the actions of some of the best equity managers in the business, we hope to uncover a few good ideas each quarter that investors can dig into a bit deeper to see if they warrant an investment. With 23 of our Ultimate Stock-Pickers having reported their holdings for the first quarter of 2020, we now have a good sense of the stocks that piqued their interest during the period.

Recall that when we look at the buying activity of our Ultimate Stock-Pickers, we focus on high-conviction purchases and new-money buys. We think of high-conviction purchases as instances when managers have made meaningful additions to their portfolios, as defined by the size of the purchase in relation to the size of the portfolio. We define a new-money buy strictly as an instance where a manager purchases a stock that did not exist in the portfolio in the prior period. New-money buys may be done either with or without conviction, depending on the size of the purchase, and a conviction buy can be a new-money purchase if the holding is new to the portfolio.

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Nupur Balain has a position in the following securities mentioned above: DAL. Find out about Morningstar’s editorial policies.