At a meeting I recently attended in Chicago on October 9, 2025, Morningstar’s research team provided invaluable insights into the strategy of wide moat investing, highlighting its strategic advantages. The session was conducted by Morningstar's Director of Equity Research (North America) Damian Conover, and Head of Global Equity Research Dan Rohr, who both contributed extensive experience and analytical expertise.
Understanding the Moat Advantage
A “moat” refers to a company’s ability to maintain competitive advantages over its peers, protecting its long-term profitability and market share. Morningstar’s focus on identifying firms with strong moats is integral to achieving investor success, aligning with their mission to empower investors.
Structure and Expertise: Damian Conover, responsible for Morningstar’s North American equity research, highlighted the organization’s robust analyst community, which boasts an average of 16 years of industry experience. This level of expertise is crucial for accurately assessing a company’s moat.
Commitment to Quality: Morningstar’s detailed process for assigning moat ratings involves a combination of foundational analysis and intense review by the Moat Committee. This thorough vetting ensures that only companies with sustainable advantages are classified as having wide moats, providing a reliable choice for long-term investments.
The Research Process: Driving Long-term Value
Structured Evaluation: Dan Rohr underscored the importance of consistency, fairness, and transparency in evaluating analyst performance. These principles ensure that the research process remains unbiased and focused on long-term investor interests.
Performance and Incentives: The Ratings Achievement Award, which grants restricted stock based on long-term call efficacy, reflects Morningstar’s commitment to prioritizing accurate evaluations over short-term market movements. This focus on long-term outcomes aligns incentives to ensure analysts strive for the most accurate and beneficial insights for investors.
The Moat Investing Edge
Independence and Objectivity: Morningstar’s analysts adopt an independent stance, avoiding corporate influence that may cloud judgment. This objectivity enables them to provide clear and reliable investment recommendations, driving better outcomes for investors seeking to build a portfolio supported by robust fundamental research.
Long-term Focus: The research emphasizes the importance of long-term success over quarter-to-quarter performance. By focusing on sustainable advantages and intrinsic value, investors can potentially achieve consistent, above-market returns with reduced risk.
Conclusion
The insights shared during the meeting highlight how wide moat investing, backed by rigorous research and a focus on long-term success, can serve as a powerful strategy in the financial world. For investors interested in building resilient portfolios, Morningstar’s methodologies offer a reliable pathway to identifying and investing in companies poised for enduring success.
The Van Eck Morningstar Wide MOAT ETF offers clients exposure to companies with enduring competitive edges. This ETF emphasizes not only these sustainable advantages but also considers valuations—specifically the price paid for stocks relative to their earnings—as important as these WIDE MOATs. Our team values this approach because from 2007 to this year, the MOAT Focus Index has surpassed the S&P 500 in 91% of five-year rolling periods and 100% of ten-year rolling periods.
For more information on wide moat investing and Morningstar’s research methodologies, please talk with your Whitaker-Myers Wealth Managers Financial Advisor.
Unveiling the Power of Wide Moat Investing: Insights from Morningstar’s Research Team
October 13, 2025
Jake Buckwalter
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