5 Best Value Stocks to Buy According to Warren Buffett

Below we present the list of 5 Best Value Stocks to Buy According to Warren Buffett. For our methodology and a more comprehensive list please see 10 Best Value Stocks to Buy According to Warren Buffett. Note that all hedge fund data is based on the exclusive group of 800+ funds tracked by Insider Monkey as part of our market-beating investment strategy.

5. Moody’s Corporation (NYSE:MCO)

Moody’s Corporation (NYSE:MCO) is one of Warren Buffett’s oldest holdings, dating back more than two decades. Buffett’s holding company Berkshire Hathaway owned 24.67 million shares of MCO on September 30, giving it a greater than 13% ownership stake in the company. MCO has also been one of Buffett’s top performing stocks over the last decade, with annualized returns of about 28%.

Buffett has called the credit ratings agency a “fantastic business” in the past, pointing out the powerful, and non-negotiable, position it holds in the market. Buffett loves stocks that have wide moats, and Moody’s has as close to an unassailable moat as you’ll find. It’s also been an earnings machine and continues to grow its operating margins, reaching 47.3% on that score in the third quarter, a 3-percentage point climb year-over-year. MCO shares trade at 29x earnings, nicely below their five-year average of 35x.