12 Best Warren Buffett Stock Picks For Beginners

7. Moody’s Corporation (NYSE:MCO)

Number of Hedge Fund Holders: 91

Berkshire Hathaway’s Stake Value: $11,677,932,812

Moody’s Corporation (NYSE:MCO) is a global risk assessment firm divided into two business segments – Moody’s Analytics and Moody’s Investors Service. Moody’s Analytics offers tools for financial risk management, while Moody’s Investors Service provides credit ratings and evaluations for corporate, government, and financial sector debt. It is one of the best Warren Buffett stock picks for beginners.

On April 23, Oppenheimer maintained an Outperform rating on Moody’s Corporation (NYSE:MCO) but slashed the price target to $489 from $523. Moody’s delivered strong quarterly results, driven by higher-than-expected Ratings revenue, but still lowered its 2025 forecast because of slower GDP growth and market worries. While Oppenheimer trimmed its estimates, it remains optimistic about Moody’s long-term future, pointing to steady demand for its credit rating services.

Moody’s Corporation (NYSE:MCO) reported a record Q1 2025 revenue of $1.9 billion, an 8% increase compared to the same period last year, driven by strong growth in both its Ratings and Analytics businesses. The company also announced an 11% hike in its quarterly dividend, raising it to $0.94 per share, payable in June. Moody’s cash flow from operations came in at $757 million, while free cash flow totaled $672 million, with the year-over-year decline mainly due to higher incentive compensation payouts. The company finished the first quarter with $6.8 billion in outstanding debt and maintained access to an undrawn $1.25 billion credit facility. Additionally, MCO repurchased 0.8 million shares at an average price of $481.77 and still has about $1.2 billion remaining under its current share repurchase authorization.

According to Insider Monkey’s fourth quarter database, 91 hedge funds held stakes in Moody’s Corporation (NYSE:MCO), up from 67 funds in the preceding quarter. Chris Hohn’s TCI Fund Management was a notable stakeholder of the company, with 13.2 million shares worth $6.2 billion.