This great stock-pickers' starting list features companies that meet three criteria.
1. They are trading at a discount to Morningstar analysts' estimates of their fair value (in other words, 4- or 5- star stocks).
2. They have "wide" economic moat ratings. Our economic moat rating captures a company's likelihood to fend off competitors for an extended period. Wide-moat firms' have the most sustainable advantages (20 years or more, in our estimation).
3. They have a Fair Value Uncertainty rating of Medium or lower. We are more confident in our fair value estimates for companies with these ratings.