Moat Stock Valuations Dictate 2022 Positioning

The success of the Morningstar Wide Moat Focus Index has long been driven by stock selection, which again proved to be the case in the first quarter of 2022.

Morningstar has identified five sources of economic moat: switching costs, intangible assets, network effect, cost advantage and efficient scale.

With the U.S. equity markets trading at a 5% premium to fair value based on Morningstar research, Morningstar believes opportunities exist in wide moat, value and small-cap stocks.

Valuation is a major part of an investor's decision to buy or sell an investment. Why not let a fund do this work for you?