Is this a good strategy?
I have roughly 440,000 in my brokerage account, currently in various index funds, mutual funds, and some other assorted stocks. Here is a strategy I am considering adopting.
Restructure my portfolio to hold 50% in the market and the rest in 20 different stocks (diverse and uncorrelated) that have 5 star Morningstar ratings (these are stocks that Morningstar assesses to be significantly undervalued).
Do you think this strategy will offer superior returns to just owning the market? Do you have opinions on Morningstar's ratings? Thank you for your time.