Style & de Stijl, or Morningstar & Mondrian: The Use & Misuse of Style Boxes

This paper is co-authored with Kevin Davis of the U.S. Air Force Academy. The paper is available on SSRN as of 18 July 2004.

ABSTRACT: Graphics distill and convey information. The clarity and power of the simple style box efficiently conveys two vital dimensions of investment style for equities-valuation and size. In promoting awareness of style variations, style boxes — Morningstar's particularly — have advanced investment literacy. However, as currently constructed, the style box misleads, and can induce unwanted behavior and unintended consequences.