Dollar Wise Decisions

Wednesday, October 04, 2006

Warm & Fuzzy Index - by Special Request

By Special Request - the 18 stocks which make up the
Warm & Fuzzy Index (WARM)
Stock% ChangeValue
3M Company (MMM)1.13102.47
Anheuser-Busch Co (BUD)1.36101.44
Berkshire Hathaway B (BRK.B)0.32104.33
Biomet (BMET)1.52103.75
Coca-Cola (KO)0.54101.84
eBay (EBAY)6.10114.56
Expeditors International (EXPD)5.63107.81
ExxonMobil (XOM)1.83102.62
Fastenal (FAST)3.41104.41
Home Depot (HD)1.79104.26
Johnson & Johnson (JNJ)0.50102.93
Medtronic (MDT)3.78104.98
Microsoft (MSFT)2.08104.80
Western Union (WU)-1.10114.01
United Parcel Service (UPS)1.20105.08
Wal-Mart (WMT)0.18102.61
Washington Post (WPO)0.27104.75
Wrigley (WWY)-0.42101.49


It looks like the Warm & Fuzzy index is beating both the Spiders & DWD Index
Here are the percentage gains for all three indexes since closing price of Friday, Sept 22, 2006

Spider Index 2.624%
DWD Index 3.542%
WARM Index 4.896%

So, what exactly is the Warm & Fuzzy index? I have learned that when I run various screens on Morning Star that regardless of what other criteria I'm looking at when I get done I also want to see which stocks are 5 star, low risk and have a wide moat. I want to feel a certain sense of comfort with stocks I might be buying with my hard earned money so I finally decided to just run a screen which looked for nothing but 5 star stocks (which mean value), low risk (which means less of a chance of me losing my money) and wide moat (which means there's a competetive advantage enjoyed by these companeis ...they're just better than the rest)

Out of the 18 stocks that resulted in the WARM index I only found 5 which were not part of either the DOW or S&P500 those 5 are as follows

  1. Berkshire Hathaway - Large Core, Classic Growth
  2. Expeditors International of Washington - Mid Growth, Classic Growth
  3. Fastenal - Mid Growth, Classic Growth
  4. Western Union - Large Growth, Classic Growth
  5. Washington Post - Mid Core, Classic Growth

After the name of each company I listed it's position in the Morningstar Style Box as well as its stock type.

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