Seasoned financial professional Pat Dorsey shows readers the secret to selecting excellent stocks All highly profitable firms attract competitors, and only firms that are able to keep competition at bay will earn above average profits for an extended period of time. An economic moat–or competitive advantage–allows a company to fend off competitors and earn sustainable, excess economic profits. In The Little Book That Builds Wealth, Pat Dorsey, the head of Morningstar’s equity research team, outlines an effective approach to investing that includes economic moats and shows readers how to apply this strategy to their own investment endeavors. Divided into six comprehensive parts, this reliable resource guides readers step by step down the path to understanding and discovering what an economic moat is, how to measure it against other moats, and how to best select a company using this method. While the moat concept is not a new one–it was made famous by Benjamin Graham and Warren Buffett–Dorsey discusses how the modern-day investor can use this strategy to select companies that possess a wide moat and feature good growth fundamentals as well as an attractive stock price. With this book as their guide, readers will discover why moats should be an integral part of their analytical investment toolkit and learn how to leverage this approach to build a portfolio of high-performance stocks. Pat Dorsey, CFA (Chicago, IL) is Director of Stock Analysis at Morningstar Inc., and is responsible for a team of more than 90 equity analysts. He played an integral part in the development of the Morningstar Rating for stocks, as well as Morningstar’s economic moat ratings. Dorsey is also the author of The Five Rules for Successful Stock Investing: Morningstar’s Guide to Building Wealth and Winning in the Market (978-0-471-26965-6). He holds a master’s degree in political science from Northwestern University and a bachelor’s degree in government from Wesleyan University.

The Little Book That Builds Wealth: Morningstar’s Knock-out Formula PDF

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