Moody’s Corporation (NYSE:MCO) is among the best Warren Buffett stocks.
A closeup of hands signing a contract for a successful real estate loan.
Buffett added Moody’s Corporation (NYSE:MCO) to his portfolio back in 2000, when the financial services company spun off from Dun & Bradstreet. As of Q4 2010, Warren Buffett held 28.42 million shares worth $754.14 million. Although reduced, the company’s stake in Moody’s remains significant. As of Q4 2025, Berkshire holds 24.67 million shares, which translates into a $12.60 billion stake.
Moody’s Corporation (NYSE:MCO) is widely held by hedge funds as well, with 91 out of 1,041 hedge funds remaining bullish on the stock. The combined hedge fund stake in the stock totals $25.54 billion as of Q4 2025.
The bullish case for Moody’s Corporation (NYSE:MCO) rests on regulatory privilege, embedded demand, and capital-light growth. As of April 20, 2026, over 80% of covering analysts keep bullish ratings on the stock, with the $535 consensus price target implying over 17% upside potential.
In its Q4 2025 investor letter, Ironvine Capital Partners, an independently owned, public equity management firm, argued that Moody’s and S&P function almost as near monopolies within global debt markets, as U.S. and European authorities depend on their ratings when buying bonds and measuring risk. As a result, issuers that choose not to obtain these ratings often face higher borrowing costs.
This dynamic puts Moody’s Corporation (NYSE:MCO) in a strong position to benefit from GDP-linked debt growth, which requires minimal capital. This leaves the company with room for share buybacks and dividend payments.
Meanwhile, Qualivian Investment Partners, an investment partnership focused on long-only public equities, discussed in its Q4 2025 investor letter how the moat is translating into performance, with the third quarter of 2025 featuring adjusted EPS of $3.92, record revenue of $2.01 billion (+11%), and an adjusted operating margin of 53% (+500 basis points). The quarterly performance was driven by strong, higher-margin MIS issuance activity.
Additionally, a bullish thesis on Daniel’s Deep Dive noted that the company’s oligopolistic position, alongside S&P and Fitch, is reinforced by SEC approval barriers, institutional dependence on external ratings, proprietary verified data, and high switching costs, arguing that the risk of AI-driven disruption may be overstated. Daniel’s Deep Dive is a Substack newsletter focused on fundamental stock analysis.
Management’s Q4 2025 call further reinforced this, reporting record full-year 2025 revenue exceeding $7.7 billion, an adjusted margin of 51.1%, and adjusted EPS of $14.94. The company rated a record $6.6 trillion debt, delivered 60% growth in private-credit revenue, and achieved 97% recurring analytics revenue in the fourth quarter, along with 97% retention among GenAI customers.
At the same time, Moody’s Corporation (NYSE:MCO)’s management also outlined plans to return at least 90% of 2026 free cash flow to shareholders, reflecting their confidence in the company’s growth outlook.
Moody’s Corporation (NYSE:MCO) is a global provider of credit ratings, research, and risk analysis, helping investors and businesses make informed financial decisions.
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