Buffett's Berkshire: Key Long-Term Investments to Consider

An analysis report highlights Berkshire Hathaway's top investment options, showcasing Moody's revenue growth and American Express's guidance uplift as promising signs for future stock performances.

Date: 03-11-2024

AI Rating: 7

Performance Outpacing the Market

Berkshire Hathaway continues to stand out as a leading investment firm, with its stocks outperforming the S&P 500 by over 931% since 1998. This legacy provides a strong foundation for investors considering stocks from its portfolio.

Moody's Corp Analysis

Moody's Corp (NYSE: MCO) demonstrates solid performance, with revenues up 22% year over year and diluted earnings per share up 32% year to date. The forecast for diluted earnings is between $10.85 and $11.05 per share, indicating strong profitability.

The fact that Moody's is priced over 40 times forward earnings might raise some concerns about the valuation; however, its position as a leader in bond credit ratings bodes well for its sustainability and investor confidence.

American Express Insights

American Express (NYSE: AXP) has shown impressive growth trends, boasting three consecutive years of double-digit revenue growth. The most recent quarter highlights this trajectory with a record revenue of $16.6 billion, reflecting an 8% year-over-year increase.

In response to these positive trends, American Express has raised its full-year guidance for earnings per share from a range of $13.30 to $13.80 to a new outlook of $13.75 to $14.05, showcasing management's confidence in continued growth.

Overall Stock Outlook

The report underscores that both Moody's and American Express present solid fundamentals that could positively impact their respective stock prices. Positive revenue growth and raised guidance indicate a favorable outlook that aligns with investor preferences for long-term holdings.

Stocks: BRK.A BRK.B MCO AXP