RE:RE:RE:RE:RE:RE:Like I said.. a blink Don't cherry pick, Ali ...it makes you look incompetent ...oh, you are? I have never suggested Morningstar be used exclusively but instead as part of an overall assessment of a stock. You might consider doing the same.
The following was a scientific study carried out to determine if Morningstar was a reliable tool to help with investing.
https://academyfinancial.org/resources/Documents/Proceedings/2015/C2_Bolster.pdf
"These results provide evidence that the Morningstar stock rating system does allow an investor to build a portfolio that outperforms the market average over a long period of time. The results are not as strong after adjusting for portfolio risk, but there is still some evidence of outperformance on a risk-adjusted basis."
Now as far as the paragraph you cherry-picked you forgot the second half. You might also consider that Vanguard is a mutual fund company (so they were not commenting on stocks) that just so happens to offer non-scientific advice and that it also was unlikely to have been happy about how it was analysed by Morningstar. But of course that would cripple your point.
As I have suggested before 1. You're coming to a battle of wits unarmed and 2. At least do a little bit of DD before spewing nonsense.
"Morningstar acknowledges its rating system is a quantitative measure of a fund's past performance that is not intended to accurately predict future performance. Instead, the company recommends investors use the rating system to evaluate a fund's track record compared to its peers. It can be the first step in a multi-step process investors can employ to analyze funds before making a purchase.
MyAli4s wrote:
A study performed by Vanguard found that Morningstar's ratings were not a good method to predict performance when measured against a benchmark. Morningstar itself acknowledges its rating system as a quantitative measure of a fund's past performance that is not intended to accurately predict future performance.
A study performed by Vanguard found that Morningstar's ratings were not a good method to predict performance when measured against a benchmark. Morningstar itself acknowledges its rating system as a quantitative measure of a fund's past performance that is not intended to accurately predict future performance.