For some things in life, we seek stamps of approval. Maybe we've built a proposal for a new product idea, hopeful that upper management will put together a small team to explore it further. Or we make a new recipe and are encouraged when our often-mum teenagers say how good it is. Or we decide to use a certain contractor for our bathroom remodel because two neighbors had good experiences--and now have stunning bathrooms.
Similarly in investing, knowing that a well-respected money manager owns a stock that you own--or a stock that you’re eyeing--can serve as a stamp of approval.
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Susan Dziubinski does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.