Identifying “economic moats,” or structural barriers that protect companies from competition, is the cornerstone of Morningstar’s equity analysis. Similar to the way castles are protected by moats, companies with economic moats are great businesses that can fend off competition and earn high returns on capital for many years. Morningstar’s new book, Why Moats Matter: The Morningstar Approach to Stock Investing, helps investors find superior businesses and determine when to buy them to maximize returns over the long term.
Why Moats Matter outlines the basic idea of economic moats, a concept pioneered by Warren Buffett, and gives investors a fundamentals-based framework for successful long-term equity investing. Why Moats Matter is co-authored by Heather Brilliant, co-chief executive officer of Morningstar Australasia and recently global head of equity and corporate credit research for Morningstar, and Elizabeth Collins, Morningstar’s director of equity research, North America. Other members of Morningstar’s equity and corporate credit and quantitative research teams also contributed to the book. In Why Moats Matter, Morningstar’s experts:
Explain the concept of economic moats and moat trends and the five sources of sustainable competitive advantage—Intangible Assets, Switching Costs, Network Effect, Cost Advantage, and Efficient Scale.
Establish the difference between business quality and undervalued stocks.
Discuss standards for evaluating moats by sector and industry.
Clarify how moats affect stock returns and stock valuation.
Offer portfolio strategies for putting the power of moats and valuation to work.
“When Morningstar started analyzing stocks more than a decade ago, we began with some core principles that guide our research to this day. Then and now, our analytic work has centered on three primary elements—sustainable competitive advantages, valuation, and margin of safety—that we believe are the keys to outperforming the stock market over time,” Brilliant said. “Why Moats Matter delves into each of these ideas and is intended for investors with a long-term perspective. When you focus on a company’s fundamental value relative to its stock price, and not on where the stock price is today relative to a month ago or a day ago or five minutes ago, you start to think like an owner rather than a trader. It’s this mindset that we believe is key to helping people become successful stock investors.”
Why Moats Matter is now available wherever books and e-books are sold. More information about Why Moats Matter, including author biographies and headshots, cover art, and methodology documents, is available at this link. To view a video about economic moats and download sample equity research reports, please visit this site. Morningstar applies this wide-moat philosophy in its Morningstar® Wide Moat Focus IndexSM, which consists of 20 stocks that represent the most compelling values as determined by the ratio of Morningstar’s estimated fair value to the stock’s current market price.
On the 45th anniversary of the first flight to land humans on the moon, a new book explains why we haven’t been back there or anywhere beyond earth orbit in over four decades, and why the US is dependent on Russia for access to its own space station.
“Since the end of Apollo, space hasn’t been considered important enough to risk human life. The House recently passed a NASA authorization bill that said ‘safety is the highest priority.’ That means that everything else, including actual spaceflight, is a lower one. We’re apparently willing to spend billions on it, but that’s for jobs, not actual progress in space,” says Rand Simberg, author of the new book, Safe Is Not An Option: Overcoming The Futile Obsession With Getting Everyone Back Alive That Is Killing Our Expansion Into Space.
“Despite the fact that, to get our astronauts to ISS, we have to send millions of taxpayer dollars to Russia, which continues to act against our national interests, there seems to be no hurry to end our dependence on them. It’s apparently more important to Congress to not possibly lose an astronaut than to regain control of our own space destiny. Congress underfunds Commercial Crew and insists that NASA continue to develop it the old, expensive slow way that killed fourteen astronauts anyway, in the name of ‘safety.'”
He points out that had the US taken this safety obsession as seriously in the 1960s, it wouldn’t have sent astronauts around the moon in 1968, when the US won the space race, let alone landing them in 1969. “Buzz and Neil thought they had maybe a 50-50 chance of success, but they went, because it was important,” Simberg says. “If I were an astronaut today, I’d be outraged at Congress, that thinks I don’t have ‘the right stuff’ to support my country in space, or that what I’m doing is so trivial it’s not worth the risk.”
The book notes that space is the harshest frontier that humanity has ever faced in its history, and it is unrealistic to think that it will be opened for development and settlement without the loss of human life, any more than any previous one was. Simberg elaborates, “I’m not saying that we should be trying to kill people in space, or be reckless, any more than I like to see people die on the highways. But the only way to not have people die in space is to not send them. We should be doing so much there that deaths are just as inevitable as they are in any other human endeavor.”
Spanish financial services group BBVA has selected a pair of grand art venues to host its series of once-in-a-lifetime private client dinners prepared by the Roca brothers, whose restaurant in Girona, Spain, landed atop the influential World’s 50 Best Restaurants list last year.
The Rocas will prepare meals for BBVA’s U.S. clients next month at the Rachofsky House in Dallas and at Rienzi, the commanding former home of the arts patrons Carroll Sterling Masterson and Harris Masterson III that now houses the European decorative arts collection of the Museum of Fine Arts, Houston.
“These two venues are the perfect settings for our clients to enjoy the culinary journey the Rocas will take them on with their multi-course dinners,” said BBVA Compass Chairman and CEO Manolo Sanchez. “As an organization, BBVA has an emphasis on the arts, and the Rocas’ particular brand of gastronomy is precisely that: an art. It’s only fitting that the venues reflect the brothers’ creative and innovative approach to gastronomy.”
The Roca brothers — head chef Joan, sommelier Josep, and pastry chef Jordi — will shutter El Celler de Can Roca for five weeks to recreate their restaurant experience for clients in countries where BBVA operates, including the U.S., Mexico, Peru and Colombia.The U.S. events in Houston and Dallas kick off the tour with a series of dinners for clients of BBVA Compass, BBVA Group’s U.S. franchise. BBVA is sponsoring the chefs’ tour as part of its three-year partnership with El Celler de Can Roca.
The tour begins in Houston on Aug. 4, where the brothers and their staff will prepare dinner for 300 guests over the course of three days in Rienzi’s ballroom. The tour will conclude its swing through the United States on Aug. 8 and 9 at Dallas’ Rachofsky House, the private home of Cindy and Howard Rachofsky. Roughly 800 works of contemporary art — including American Minimalism pieces, post-war European art with a specific focus on Italy, and the art of post-war Japan — are on display in the Rachofsky home on a rotating basis.
Joan Roca is considered a pioneer in sous-vide, a cooking process where food is vacuum-packed and cooked in water. He developed the Roner, a professional sous-vide cooking device. Josep Roca, the sommelier, meanwhile, has won over critics with his unorthodox wine pairings and techniques. And Jordi Roca, the pastry chef, won the World’s Best Pastry Chef Award 2014. The judges called him “part chef, part architect, part magician” and an “eccentric but modest genius,” citing his work recreating famous perfumes in edible form.
Smith & Wollensky Restaurant Group (SWRG), a collection of boutique American steakhouses, is proud to announce the expansion of its iconic brand internationally. Smith & Wollensky is honored to bring the classic steakhouse brand into London, opening early spring 2015, just off The Strand. The company is thrilled to share its unique dining experience with such a cosmopolitan and food-savvy city.
“We’ve always recognized the opportunities for expansion with the Smith & Wollensky brand. The iconic restaurants have a tremendous global following and rich heritage,” stated Michael Feighery, CEO and President of SWRG. “Our brand has experienced remarkable success and recognition throughout the U.S., and London was the most obvious place to expand due to the international appeal and demand. We are very proud of our history and contribution to the American steakhouse dining segment. Equally we have enormous respect for the U.K.’s spectacular culinary scene. This opening will pay homage as we bridge together these two vibrant countries with yet another common thread.”
The London restaurant will be located on the ground floor of the Adelphi building on John Adams Street. Featuring 300 seats in 15,000 square feet, the two floors will showcase two full dining bars, two main dining areas and several private event rooms. The scratch kitchen will outfit a full butcher shop and dry-aging room on-site, a signature feature of the Smith & Wollensky brand. Imported USDA Prime beef will undergo a distinct and traditional aging process, enhancing the primal cuts and ultimately delivering a perfectly balanced steak.
The new restaurant will mirror the classic green and white Smith & Wollensky brand, offering a timeless, vibrant, yet relaxed atmosphere that envelops guests in gracious hospitality. It will feature many classic decor elements while integrating the unique style of the building, complementing the capital’s rich history. It’s a dining experience that offers simple refinement in the grand tradition.
The restaurant will be open Monday through Sunday serving both lunch and dinner, featuring a traditional Smith & Wollensky menu of USDA Prime dry-aged steaks, premium seafood and award-winning wines. The menu will be complemented by local infusions and regional flavors. Design and construction are being led by London’s acclaimed Martin Brudinzki Design Studio and Acacia Consulting.
Foto cedida. In de Wulf Named #1 Restaurant in Europe
Steve Plotnicki and Opinionated About Dining have officially unveiled this year’s list of the Top 100 European Restaurants featuring restaurants from 12 countries. More than 4,300 food enthusiasts contributed over 140,000 reviews as part of this year’s survey – the largest to date.
The 2014 list introduces a new “Top 10” with In de Wulf (Dranouter, Belgium) earning first place; La Maison Troisgros (Roanne, France) second; Quique Dacosta Restaurante (Denia, Spain) third; 41 Degrees (Barcelona) jumping from nineteenth to fourth; Le Louis XV-Alain Ducasse (Monte-Carlo, Monaco) fifth; Restaurant Amador (Mannheim, Germany) leaping from number nine to number six; noma (Copenhagen, Denmark) ranking seventh; The Fat Duck Restaurant (Bray-on-Thames, UK) eight; L’Astrance (Paris) ninth; and L’Arpege (Paris) rounding out the top 10.
“I anxiously await the trending styles and types of cuisine highlighted in the European list—it’s incredibly forward thinking and this year’s list is no different with our European voters showing they are on the cutting edge of the contemporary dining scene as illustrated by their voting In de Wulf to the top of the list,” explains Plotnicki. “There is also a resurgence of interest in restaurants featuring classical French cooking.”
New restaurants recognized this year include Azurmendi, Larrabetzu, Spain (19); Maaemo, Oslo, Norway (49); Andreas Caminada, Furstenau, Switzerland (54); Tim Raue, Berlin, Germany (62); Passage 53, Paris (71); Restaurant Bareiss, Baiersbronn, Germany (72); Oaxen Krog & Slip, Stockholm, Sweden (79); Marcus, London (97); and Yam’Tcha, Paris (100).
“This year’s list also features our first-ever ‘Just Missed’ list, which gives readers a look into the contenders for next year,” continues Plotnicki.
The OAD survey relies on tapping into the experience and opinions from diners who are passionate about where they eat. The methodology assigns a weight to each restaurant based on factors such as price point and the type of diners it attracts, and assigns a weight to reviewers based on the quantity and quality of restaurants a reviewer has visited.
Steve Plotnickiis the author of OAD blog and Opinionated About U.S. Restaurants 2011. He will be featured in the “Foodies” documentary, which focuses on the fine dining subculture of foodies, out later this year. He is working on producing a TV show that will showcase American ingredients and the chefs who prepare them.
Foto: lucianosilva, Flickr, Creative Commons. GVC Gaesco presenta su once titular para este Mundial
It is one of the questions of the moment: who will win the 2014 FIFA World Cup in Brazil? The theories are many; some point to tradition as paramount, others point to recent results as the best predictor, others maintain that fan support is always critical. But, among the many theories, Itau Unibanco, Latin America’s biggest bank and the official bank of the 2014 FIFA World Cup, believes there is a better way to find the winner.
Today, Itau presents its first soccer research report, offering a clear, quantitative way to help fans make sense of all the predictions and theories that are out there.
Putting personal footballing passions and biases aside, Itau’s macroeconomics research team has developed an econometric model that looks at the key quantifiable factors which it believes have been critical to determining success in World Cups: 1) the current quality of the team 2) the team’s historic world cup performance 3) the support of fans.
According to the bank’s model, this year’s World Cup will offer surprises from the outset with England not making it past the group stage, while Iran and Ivory Coast will be the only Asian and African teams respectively, to make it to the round of 16. This will lead to an extraordinary semi-final round with Brazil, Germany, Argentina and Spain, who have eleven World Cup titles between them, fighting it out for the ultimate prize. As to the winner, Itau’s macroeconomics research team has its own strong feeling but they let fans around the world decide for themselves.
Ilan Goldfajn, Chief Economist of Itau Unibanco, says: “It is only fitting that Itau Unibanco, as Latin America’s biggest bank, the official bank of the World Cup and with a Brazilian passion for football in its DNA, should offer its own predictions for the coming FIFA World Cup™. Putting aside our personal preferences and our usual focus on macroeconomics, we have developed a methodology that, if proven accurate, will produce two great semi-final play-offs in which Brazil, Spain, Germany and Argentina will vie to qualify for the final. Whatever happens, the 2014 World Cup hosted by Brazil has something to thrill and delight football lovers all over the world.”
Supporting sports is part of Itau’s DNA. The company believes that sport, along with culture and education, is key to a society’s sustainable development, especially at a time of change, such as that being experienced by Brazil currently. Itau’s involvement with football, Brazil’s great passion, began more than 25 years ago when it sponsored the broadcasting of various competitions including the National Championship, Libertadores Cup and FIFA World Cup™, among others.
In October 2008, Itau’s role as a patron of sport was reinforced when it became the official sponsor of the Brazilian national soccer team in all its categories: Professionals, Olympic Team, National Team U-23, National Team U-20, National Team U-17, National Team U-15 and the Women’s National Team. In November 2013, Itau and CBF renewed the sponsorship contract through to 2022, which will include the FIFA World Cup™ in both Russia and Qatar. In April 2009, the bank was the first Brazilian company to sign a contract for the sponsorship of the 2014 FIFA World Cup™. It has also, since early 2011, been a sponsor of the Brazilian National Beach Soccer Team.
Pontificia Universidad Catolica de Chile (UC) has overtaken Brazil’s Universidade de Sao Paulo (USP) to top QS (Quacquarelli Symonds) University Rankings: Latin America for the first time. USP slips to second, having ranked first every year since 2011.
Whereas USP is the top institution for research productivity, UC is well ahead when it comes to citations. UC has also improved its student/faculty ratio and web impact this year. To view the complete ranking use this link.
Brazil and Chile have strengthened their dominance this year, with Mexico, Argentina and Colombia struggling to keep up. Brazil has three of the top four institutions and 10 of the top 20, while 16 of the 20 leading Chilean universities have improved their position.
Universidad Nacional Autonoma de Mexico (UNAM) slips two places to 8th, falling behind Tecnologico de Monterrey for the first time. Despite being rated number one for academic reputation, UNAM has comparatively modest scores in several other indicators.
Argentina’s Universidad de Buenos Aires drops seven places to 19th, having ranked 8th in 2011. Buenos Aires is the region’s most popular institution among graduate employers, but like UNAM suffers from a comparatively poor student/faculty ratio and low proportion of staff with a PhD.
Seven of the top 10 Colombian universities have dropped, with Universidad de Los Andes Colombia slipping to fifth and Universidad Nacional de Colombia dropping five places to 14th.
“Universities from Mexico, Argentina and Colombia excel in specific areas, but they currently lack the all-round consistency of the top institutions from Brazil and Chile,” says QS head of research Ben Sowter. “High student-to-faculty ratios are an issue at several major public research institutions throughout the region.”
18 countries are represented, led by Brazil with 78, ahead of Mexico (46), Colombia (41), Argentina (34) and Chile (30).
Foto cedidaXaviera MV . Biscayne Art House Showcases the Photography of Artists Pia Bracco and Xaviera MV
An exhibition showcasing the colorful work of Xaviera MV and Pia Bracco opened May 15, at Biscayne Art House on Brickell. The opening night reception attracted a glamorous and diverse crowd of art lovers. The show, which runs through June 3, features an exciting collection of photography by these two extraordinary artists.
Xaviera MV, who has always found inspiration in nature, shares her artistic perspective through photography. “Some people believe that we have to travel far away to find beauty for inspiration; the truth is we can find it just by looking out the window,” said the artist.
Argentine native Pia Bracco uses art and photography to share her love for plants, flowers and animals, showing details that typically go unnoticed by the naked eye. The vibrant feathers of a bird, the expression in its eyes, the bright colors; these details along with her “less is more” philosophy are the essence of Bracco’s extrarordinary work.
The exhibition at the Biscayne Art House runs through June 3, 2014. It is open to the public Monday through Friday, from 9 am to 5 pm, by appointment only.
As summer approaches, employees are busy planning long-awaited vacations. But a new Robert Half survey shows 39 percent of workers won’t use all the paid vacation time they’re given. The reasons: 38 percent are saving days in case they need them later, while 30 percent fear falling behind at work.
The national study was developed by Robert Half, the world’s first and largest specialized staffing firm, and conducted by an independent research firm. It is based on 436 telephone interviews with U.S. adults working in an office environment.
Workers were asked:“Do you typically use all of the paid vacation days you are provided by your company?” Their responses:
Yes
58%
No
39%
Don’t know/no answer
3%
Workers who answered “no” were asked: “What is the primary reason you don’t use all of your vacation time?” Their responses:
You want to save time in case you need it
38%
Too much work – you don’t want to fall behind
30%
You don’t like to take time off or vacations
12%
Don’t get any vacation time
10%
Your manager would frown upon it
3%
Something else
7%
“Whether you’re a vacation ‘saver’ or ‘spender,’ it’s important to have balance,” noted Paul McDonald, senior executive director of Robert Half. “All work and no play doesn’t just lead to burnout — it also erodes creativity, since stepping out of your routine frequently sparks innovation,” he said. “Fresh perspective is useful in just about any profession.”
McDonald added that managers should lead by example when it comes to saying “bon voyage” to the office. “Supervisors should encourage their teams to take a break and recharge, especially their top performers, who are often the most aggressive vacation savers and most susceptible to burnout. The best way to do this is by taking time off yourself,” he said.
Foto cedidaEl Celler de Can Roca, Joan Roca, durante su clase a estudiantes de Houston. Foto cedida. BBVA Compass lleva a sus clientes de EE.UU. y Latinoamérica la mejor cocina del mundo
Spanish financial services group BBVA announced Monday it is bringing three of Spain’s most prized personalities to the U.S.: the Roca brothers, whose El Celler de Can Roca has muscled its way to the top of the high-end restaurant world through the Rocas’ wondrous techniques that honor tradition and push culinary boundaries.
The restaurant — run by head chef Joan, sommelier Josep, and pastry chef Jordi — landed on the top of Restaurant magazine’s influential World’s 50 Best Restaurants list in 2013. At a press conference Monday in Houston, the bank and Joan Roca announced that all three brothers, along with 20 members of their staff, will shutter El Celler de Can Roca for five weeks this summer to travel to Houston and Dallas and recreate their Girona, Spain-based restaurant for clients of BBVA Compass, BBVA Group’s U.S. franchise.
“As part of a global bank, we’re drawn to endeavors that transcend boundaries — cultural, linguistic and, in this case, gastronomic,” said BBVA Compass Chairman and CEO Manolo Sanchez. “The Rocas are universal in their approach to food — bringing together tradition and modernity among other unlikely pairs — and we honor that spirit with this tour.”
During Monday’s press conference, Roca and bank officials announced details of the tour. The summer events in Texas will kick off a series of client dinners BBVA also will sponsor in other countries where it operates, including Colombia, Mexico and Peru. BBVA is sponsoring the chefs’ tour as part of its three-year partnership with El Celler de Can Roca.
Joan Rocaalso detailed the scholarships BBVA is providing for four Texas chefs. Two students from Houston and two from Dallas will have the opportunity to apprentice under the Roca brothers next year in El Celler de Can Roca. The four-month program begins in January. The scholarship includes airfare and housing in Girona as well as training at Spain’s Autonoma University of Barcelona.
“We consider it critical to support talent, and we want to help the next generation of chefs explore their skills and develop confidence in a collaborative environment,” Joan Roca said. “Every year, more than 400 people apply to study in our training program and we are looking forward to working with the students from Texas.”
Also on Monday, Joan Roca taught a master cooking class to a dozen student chefs at the International Culinary School at the Art Institute of Houston. Chef and television personality Ingrid Hoffmann served as emcee during the class.
Joan Rocais considered a pioneer in sous-vide, a cooking process where food is vacuum-packed and cooked in water. He developed the Roner, a professional sous-vide cooking device. Josep Roca, the sommelier, meanwhile, has won over critics with his unorthodox wine pairings and techniques. And Jordi Roca, the pastry chef, won the World’s Best Pastry Chef Award 2014. The judges called him “part chef, part architect, part magician” and an “eccentric but modest genius,” citing his work recreating famous perfumes in edible form.
BBVA Compass’ Sanchez said the brothers, all at the top of their games in three demanding disciplines, epitomize the collaborative spirit in an industry known for its fierce competition.
“Each of the Roca brothers could go off on his own and build an individual empire that’s quite successful, but they strongly believe that they can do more as a team,” Sanchez said. “That says something powerful to us because that same belief drives BBVA Compass.”
