Of course when investing my hard-earned dollars, I rarely take anybody's word. So, even knowing that Dorsey probably does tons of testing in his role at Morningstar (not to mention that he probably has lots of staff who also test for him), I thought I'd run some companies through his Moat Test and see which ones rose to the top.
The results are very interesting to say the least.
However, before I get to them, here are Dorsey's 4 Moat defining criteria:
1) Free Cash Flow / Sales is 5 percent or better (I also went back 5 years and required that the company beat this mark in all 5 years).
2) Net Margins greater than 15 percent (again, the company had to beat this mark in each of the past 5 years).
3) Return on Equity above 15 percent (in each of the past 5 years).
Armed with these 5 criteria, I proceeded to test about 7800 stocks (those trading on the NYSE, NASDAQ and AMEX exchanges).
And this is what I found.
- Mood:
Excited!
You can maintain your blog by
logging in to your Bravenet account. Once you are logged in you can customize the layout, colors, and features. In addition, you can add your own links, edit your profile, add your friends, and change many other options to personalize your blog.
Once you begin using your blog, you can view statistics in your members area to see how many people are reading your blog as well as where they come from.
We hope you enjoy your Blog. Be sure to tell all your friends about this great new service from Bravenet!
Bravenet Blog 
Blog Community
Get a Free Blog
Manage your Blog
bravenet.com