Morningstar's Wide Moats

Paul Larson,equity strategist at Morningstar,says the economy and its indicators are less bad.There's a big difference between less bad and good.We've been having simply a multiple expansion rally-just a rebound.It was not reflecting a meaningful recovery.There is not a whole lot of substance to the green shoots theory.
Morningstar likes companies with wide moats.Their profits are protected from competitors over the long term.Procter and Gamble is one of these.A third of its sales are in the emerging markets.Novartis is another wide moat firm.It is very diverse,being big in vaccines,generic drugs and consumer products.Lowe's is a third wide moat company.It's had negative same-store sales recently,but is very,very cheap right now,Mr.Larson notes.