Our Investment Principles
Here are our investment principles that guide our decision making process:
We put investors first.
- We believe the firms that put investors first win in the long term because their investors win.
- Since 1984, Morningstar, Inc. has been helping investors reach their financial goals. Our fiduciary duty to our principals is paramount.
- To deliver results, we think it’s necessary to invest with conviction, even when it means standing apart from the crowd.
- Our research shows that making decisions based on fundamental analysis, rather than short-term factors and sentiment, delivers better long-term investment results.
We invest for the long term.
- Taking a patient, long-term view helps people ride out the market’s ups and downs and take advantage of opportunities when they arise.
- Investing with a multi decade horizon aligns with investors focus on increasing their purchasing power over their lifetimes.
- The long term is the only period where fundamental, valuation driven investing works.
We’re valuation-driven investors.
- Anchoring decisions to an investment’s fair value – or what it’s really worth – can lead to greater potential for returns.
- Valuation-driven investing through a long-term focus on the difference between price and intrinsic value enables investors to get more than they’re paying for.
We take a fundamental approach.
- Powerful research is behind each decision we hold, and we understand what drives each investment we analyse.
- Fundamental investing incorporates a focus on the future earnings of an investment and not its prospective price change.
We strive to minimise costs.
- Controlling costs helps investors build wealth by keeping more of what they earn.
- Investment returns are uncertain, but costs are not.
We build portfolios holistically.
- To help manage risk and deliver better returns, truly diversified portfolios combine investments with different underlying drivers.
- Portfolios should be more than the sum of their parts.
- True diversification can have a powerful impact on a portfolio’s risk-adjusted returns – but simply holding more investments isn’t the same as true diversification.
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Morningstar is a global leader in asset allocation, investment research and portfolio construction.