August Book Club Meeting (Ended)
Why Moats Matter: The Morningstar Approach to Stock Investing
Meet local authors, explore and debate timely industry events and get to know like-minded financial literature enthusiasts. The CFA Society Chicago Book Club embraces discussion of a wide range of themes in the informal environment provided by the book club. From tried and true classics to cutting-edge industry ideas, well-known leaders and niche topics in between, we have something for everyone.
Discuss the new book, Why Moats Matter: The Morningstar Approach to Stock Investing (available July 21, 2014) by Heather Brilliant, CFA, and Elizabeth Collins, CFA. The author, Elizabeth Collins will join us for this discussion.
Author: Elizabeth Collins, CFA
Elizabeth Collins, CFA, is director of equity research, North America for Morningstar, responsible for leading the firm’s team of North American-based equity research analysts. Before assuming her current role in 2014, Collins was chair of Morningstar’s Economic Moat committee, a group of senior members of the equity research team responsible for reviewing all Economic Moat and Moat Trend ratings issued by Morningstar. She was also director of basic materials equity research, where she oversaw coverage of companies in the agriculture, building materials, chemicals, coal, forest products, metals and mining, packaging, and steel industries. Prior to leading the basic materials team, Collins was a senior analyst on the energy team. She joined Morningstar in 2005. Previously, Collins worked as a youth program coordinator for a public housing community organization in Boston. Collins holds a bachelor’s degree in psychology from Boston College and a master’s degree in business administration from DePaul University. She also holds the Chartered Financial Analyst® designation.
Book Summary: Why Moats Matter: The Morningstar Approach to Stock Investing
Finding great businesses at great prices is the holy grail of investing. How can you tell a great business from a poor one? A great business is one that can fend off competition and earn high returns on capital for many years to come. Such companies have economic moats—structural advantages that protect them from competitors, just as physical moats protected castles from enemies. Even better than finding a great business is finding one at a great price.
This book will:
• Introduce Morningstar's approach to stock investing
• Explain the concept of economic moats and the five sources of sustainable competitive advantage—Intangible Assets, Switching Costs, Network Effect, Cost Advantage, and Efficient Scale
• Establish the difference between business quality and undervalued stocks
• Discuss industry standards for evaluating moats
• Help determine how moats affect stock returns and stock valuation
Attire: Business Casual
Registration: Limited to 15 attendees in person. Conference call information will be provided via email to registered participants.
Note: CFA Chicago’s Informal Happy Hours are also typically held on Thursdays at 5pm. Now you can attend the book club and continue your discussion at the Informal Happy Hour.
Be sure to join the CFA Society Chicago - Book Club Group on LinkedIn. By joining the group, you are able to participate in online discussions about the readings between meetings, vote on future readings, and weigh in on potential meeting times and venues.
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