Morningstar's senior stock analyst Greggory Warren revealed the Top 10 buys and sells for their managers for the third quarter and early fourth quarter. The list of top purchases (shown below) was heavily weighted toward financial services and technology, Warren noted, with AIG taking the top spot.
However, Warren also points out that while Morningstar analyst Jim Ryan says "shares of AIG are materially undervalued when compared to his own valuation (which assumes nothing more than mediocre results over time)," uncertainties still remain. In fact, Ryan acknowledges that AIG "has made significant strides in its recovery," but Warren adds that from an "economic moat perspective, AIG fails the test in almost all regards, [and Ryan believes] that the road to re-establishing its competitive position will be long and extremely difficult."
As for the top 10 stocks that Morningstar was selling, that list is topped by Anheuser-Busch Inbev and Wal-Mart.
For more on Morningstar's stock perspectives, click here.