Warren Buffett’s 10 Longest-Held Stocks

3. Moody’s Corporation (NYSE:MCO)

Warren Buffett’s First Major Purchase: 2000

Berkshire Hathaway’s stake in Q3 2024: $11.7 billion

Moody’s Corporation (NYSE:MCO) is an integrated risk assessment company that provides credit research, credit models, analytics, and economic data as part of its risk management services. Moody’s Corporation (NYSE:MCO) remains one of Warren Buffett’s oldest and most enduring investments due to its dominant position in the credit ratings industry.

Back in December, Citi began covering Moody’s Corporation (NYSE:MCO) with a price target of $565 and a Buy rating. The firm identified a number of factors that could contribute to a favorable credit issuance cycle and expressed confidence in the company’s prospects, including the Federal Reserve’s easing of policy, tight credit spreads, a large number of impending debt maturities, a more balanced mix of high-yield issuances, $2.6 trillion in dry powder private equity, and below-average mergers.

Moody’s Corporation (NYSE:MCO) reported strong financial results for the third quarter of 2024, including a 32% increase in adjusted diluted earnings per share and a 23% increase in revenue of $1.8 billion. This expansion was largely driven by the ratings industry, especially investment-grade issuance, which saw a 70% increase in transaction revenue. Moody’s also expanded its lending portfolio to include Numerated Growth Technologies, a platform that allows financial institutions to initiate loans. For financial institutions navigating the digital lending landscape, this integration might produce a more complete solution.