
Summary of Using Morningstar's Rating for Stocks
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Summary of Using Morningstar's Rating for Stocks
Above all, keep in mind that true investing means buying a stake in a superior business at a discounted price and allowing that business to compound in value over a long period of time. It isn't hopping on the latest hot concept hoping for a quick profit. That's why the Morningstar Rating for stocks does not attempt to prognosticate short-term price movements or momentum. Morningstar believes that the long-term value of a stock is tied to how much value the company generates for its shareholders.
What you have learned
- What Is Fair Value?
- How Does Morningstar Assign Stars?
- What Causes a Morningstar Rating to Change?
- A Different Valuation Approach