17 Inexpensive, Well-Run Companies

Howard Schultz announced this week that he's leaving  Starbucks (SBUX). During his 30-year-plus tenure, Schultz transformed the local coffeehouse chain into a worldwide leader in the consumer industry. He helped Starbucks carve out a wide economic moat. Schultz and the management team at Starbucks have, in our opinion, done a superior job of looking out for shareholder interests. We've awarded the company an Exemplary Morningstar Stewardship Rating.

What makes a company's stewardship exceptional? We judge company stewardship from an equity holder's perspective; we like managers who are in shareholders' corners. The Morningstar Stewardship Rating for stocks encompasses the quality and depth of a company's management and board of directors in their roles as stewards of investor capital. We place a heavy emphasis on capital allocation decisions; after all, capital allocation decisions ultimately lead to the creation or destruction of value for shareholders.