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How Investors Use wRatings
The W Ratings system provides a common framework for evaluating the customer metrics of a stock. No other system to our knowledge can provide this unique and insightful data.
Investors use the data for many purposes, such as:
1. As a filtering system to construct their portfolios, thereby allowing them to select what to own or avoid.
2. Analyze current investments to track trends over time.
3. Find short-term or contrarian ideas by exploiting variations between economic profit (historical) and moat barriers (forecast) performance, or W Scores and stock price.
4. Look for inflection points in multiple stocks that indicate sector rotation should occur as buyers are shifting their preferences.
5. Identify underperforming management where high moat barriers exist over many quarters, but unable to generate economic profits.
6. View the impact of sector and industry performance on a stock’s valuation.
7. Track key consumer buying criteria to identify trends not seen anywhere else.
8. Spot emerging or narrowing strengths in the 10-year competitive life cycles and moat barriers.
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