Classic Analysis Always Wears Well
From The Financial Times newspaper:
Link to original Letter at FT.com
Classic analysis always wears well
Published: September 7 2007 03:00 | Last updated: September 7 2007 03:00
From Mr Logan Flatt.
Sir, Luke Johnson pines for high-quality stock research focused on the intrinsic worth of a company:
". . . classic analysis of shares will come back into fashion one of these days. I look forward to its renaissance." ("Bring on the rebirth of classic analysts", Ft.com September 4.)
Mr Johnson should note that classic, fundamental analysis never goes out of fashion. It is timeless in its design and wears extremely well. Also, I am happy to inform him that the renaissance festival is alive and well in downtown Chicago at the offices of Morningstar, Inc.
The company's five-star rating system is based on the "margin of safety" between market price and intrinsic worth, just as the dynamic duo of Warren Buffett and Charlie Munger advocate.
Furthermore, Morningstar's classically trained analysts can be an investor's source of calm amid the storm - they often remind their readers to remain focused on intrinsic worth when market prices get choppy and speculators get sloppy. Why wait for fashions to change when one can be wiser and richer today?
Logan Flatt,
PowerWealth.com,
Dallas, TX 75230, US
Copyright The Financial Times Limited 2007
Copyright 2007 PowerWealth.com. All rights reserved.
