Wide Moat Stocks

[schin]

2 minutes ago, valueinvesting101 said:

All stocks discussed in this thread :
Returns from 1 Jan 2015 - Jan 1 2025
 

• Fair Isaac Corporation (FICO): Approximately 1,100% return
• TransDigm Group (TDG): Approximately 900% return
• Mastercard (MA): Approximately 700% return
• Visa (V): Approximately 650% return
• Alphabet Inc. (GOOG): Approximately 600% return
• Pool Corporation (POOL): Approximately 550% return
• Moody's Corporation (MCO): Approximately 500% return
• Broadridge Financial Solutions (BR): Approximately 450% return
• Morningstar (MORN): Approximately 400% return
• Martin Marietta Materials (MLM): Approximately 350% return
• Vulcan Materials Company (VMC): Approximately 300% return
• WD-40 Company (WDFC): Approximately 250% return
• McCormick & Company (MKC): Approximately 200% return
• Johnson & Johnson (JNJ): Approximately 150% return
• Stericycle (SRCL): Approximately 100% return
  
  Looks like all except last 3 outperformed S&P return of 242%

 

@valueinvesting101 - We should create a new list! 

 

If the prior list was equally weighted, do you think it would have performed better than BRK? DJIA? QQQ?

[DooDiligence]

Lube and spice. Who knew?

 

edit: Thanks for bumping this. I need to re-read Pat Dorsey and Heather Brilliant.

 

https://www.amazon.com/Five-Rules-Successful-Stock-Investing/dp/0471686174/

 

https://www.amazon.com/Why-Moats-Matter-Morningstar-Investing/dp/1118760239/

Edited Monday at 01:11 PM by DooDiligence

[tooskinneejs]

Here are the top 10 holdings in the VanEck Morningstar Wide Moat ETF (MOAT):

Top 10 Holdings (28.04% of Total Assets)

Symbol     Company        % Assets

GILD          Gilead Sciences, Inc.3.36%

BMY          Bristol-Myers Squibb Company2.95%

DIS            The Walt Disney Company2.89%

CTVA        Corteva, Inc.2.83%

BA             The Boeing Company2.74%

GEHC       GE HealthCare Technologies Inc.2.73%

KVUE        Kenvue Inc.2.68%

MO           Altria Group, Inc.2.67%

NKE          NIKE, Inc.2.61%

VEEV        Veeva Systems Inc.2.57%

[DooDiligence]

Here's a lazy lookup on Dorsey Asset Management positions. He got real weird at one point, which had me questioning whether he'd read his own book. If this link is accurate, it looks like he got back on track.

 

https://whalewisdom.com/filer/dorsey-asset-management-llc

[no_free_lunch]

9 hours ago, tooskinneejs said:

Here are the top 10 holdings in the VanEck Morningstar Wide Moat ETF (MOAT):

Top 10 Holdings (28.04% of Total Assets)

Symbol     Company        % Assets

GILD          Gilead Sciences, Inc.3.36%

BMY          Bristol-Myers Squibb Company2.95%

DIS            The Walt Disney Company2.89%

CTVA        Corteva, Inc.2.83%

BA             The Boeing Company2.74%

GEHC       GE HealthCare Technologies Inc.2.73%

KVUE        Kenvue Inc.2.68%

MO           Altria Group, Inc.2.67%

NKE          NIKE, Inc.2.61%

VEEV        Veeva Systems Inc.2.57%

I am not crazy about that list.  If I was to do similar, I would probably just build my own etf.  I did that in my wifes account, just 10 canadian stocks with low debt and reasonable businesses.  I did fine!

[Spekulatius]

Morningstars wide moat are pretty debatable. Try assign a wide moat to many Pharmaceutical stocks despite the fact that the moat there have greatly diminished since the focus switched to biological and they outsourced R&D to biotechs and upstarts.

Edited Monday at 10:59 PM by Spekulatius

[Eldad]

1 minute ago, Spekulatius said:

Morningstars wide moat are pretty debatable. Try assign a wide moat to many Pharmaceutical stocks despite the fact that the moat there have greatly diminished since the focus switched to biological and they outsourced R&D to biotechs and upstarts.

I find their moat ratings to be valuable on the whole, but they do seem to hold on to biases for longer than they should. For example Campbell’s soup they still have as wide moat as the margins have been eroding for a decade or more. And they left AAPL as a narrow moat for a ridiculous amount of time. How many years in a row of 30+% ROIC does it take to get the upgrade? 
 

And yes the drug stocks all wide moat and 5 star buys for years that never go  anywhere. 

[DooDiligence]

4 minutes ago, Eldad said:

I find their moat ratings to be valuable on the whole, but they do seem to hold on to biases for longer than they should. For example Campbell’s soup they still have as wide moat as the margins have been eroding for a decade or more. And they left AAPL as a narrow moat for a ridiculous amount of time. How many years in a row of 30+% ROIC does it take to get the upgrade? 
 

And yes the drug stocks all wide moat and 5 star buys for years that never go  anywhere. 

 

Agreed. I still like the 2 books and think that applying the lessons on your own is better than taking someone else's word for it. My library stopped their Morningstar subscription a long time ago They dropped the paper version of ValueLine Last May. I'm kinda glad. I just pulled Dorsey and Brilliant's books from storage and am going to read them again to see if I can come up with my own moat ratings for what I own.