Is Moody’s Corporation (MCO) the Best Stock to Buy According to Billionaire Warren Buffett?

From Yahoo Finance: 2025-04-28 18:13:00

Warren Buffett’s investment success stems from Berkshire Hathaway’s diverse portfolio, exceeding $267 billion in equities and $334.20 billion in cash reserves. He focuses on long-term value investing in companies with strong economic moats, avoiding diversification and prioritizing understanding of businesses over stocks.

Despite strong market performance, Buffett adopted a cautious approach in 2024, selling off overvalued stakes. He also criticized President Trump’s import tariffs. Berkshire’s 13F portfolio in the fourth quarter totaled $267 billion, with the top ten holdings comprising nearly 90% of the portfolio.

Moody’s Corporation (MCO), a key stock in Buffett’s portfolio, holds a 4.37% portion with a value of $11,677,932,812. Moody’s remains a dominant force in credit ratings and financial analytics, posting a 13% year-over-year revenue increase in 2024. Citi initiated coverage with a $565 price target and Buy rating in December.

Moody’s generates revenue from subscription-based services and fees for ratings and analytics. Despite competition, its specialization in credit risk and regulatory compliance positions it favorably. Year-to-date, MCO’s stock has lost 7.13%, trading at $439.63 per share on April 24.

While MCO ranks 7th on Buffett’s best stocks list, AI stocks may offer higher returns in a shorter timeframe. AI stocks have shown greater promise in 2025, with potential for significant growth. Consider exploring AI stocks for potentially higher returns.

Read more: Is Moody’s Corporation (MCO) the Best Stock to Buy According to Billionaire Warren Buffett?