Last week marked “Investors Ideas” week at Morningstar and Stock Investor editor Paul Larson, shared some insights into stocks he likes right now.
In the first video, Paul discusses one of the most recent additions to his portfolio, Zimmer Holdings. The wide moat as a result of it’s intellectual property and in particular the switching costs associated with Zimmer’s products, appeal to Morningstar Stock investor editor. With the stock trading around $52, it offers a significant Margin of Safety to Morningstars Fair Value estimation of $78.
In this second video, Paul discusses the outperformance of the small caps relative to the larger value caps, something I highlighted in a chart here a few weeks ago. No moat stocks have continued to outperform the more stable, wide moat stocks, a trend which started in early 2009. Paul believes however that one unloved stock, Novartis, is a bargain today due to its level of diversification, size, competitive advantage, valuation levels and dividend rate.
