When you’re studying Warren Buffett Stocks, you’re really learning from one of the most successful investors in modern history.
Buffett’s approach is famously long‑term, favoring businesses with strong moats, predictable earnings, and solid management.
Two stocks that stand out right now in his portfolio? Mastercard (MA) and Moody’s (MCO). Here’s why they are brilliant Warren Buffett stocks to buy and hold.
1. Mastercard: A Steady Grower in Buffett’s Financial Playbook
Buffett has been a Mastercard fan for quite some time. As of June 30, 2025, Berkshire Hathaway holds about 3,986,648 shares of Mastercard, which are valued at roughly $2.24 billion. That represents about 0.87% of his public equity portfolio.
Why Mastercard qualifies among top Warren Buffett stocks:
- Strong competitive positioning: Mastercard is one of the dominant global payment networks. Its business model is mostly “capital‑light,” generating revenue through transaction volume and network effects. That aligns well with Buffett’s preference for businesses that do not depend heavily on capital expenditure.
- Resilience and secular trends: With digital payments growing globally, Mastercard is benefitting from trends like e-commerce, contactless payments, and expanding merchant acceptance. These tailwinds make it a compelling long‑term holding.
- Profitability and consistent margins: Mastercard has deep moats in its curve of returns — margins on cross‑border transactions, brand, and trust. Buffett tends to favor these kinds of durable advantages.
While the position is smaller relative to giants like Apple or American Express in Berkshire’s portfolio, holding nearly $2.3B in Mastercard shows Buffett still sees growth potential.
It’s one of those Warren Buffett stocks that may not dominate the top of the list but contributes to diversification in high‑quality financial infrastructure.
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2. Moody’s: A Core Warren Buffett Growth Gem
Perhaps more “Buffett‑classic” than Mastercard is Moody’s Corporation (MCO). As of the same reporting date (June 30, 2025), Berkshire owns about 24,669,778 shares of Moody’s, worth approximately $12.37 billion, making Moody’s one of the top holdings. That’s about 4.81% of the public equity portfolio.
Why Moody’s is among Buffett’s favorite long‑term bets:
- Capital‑light business model: Moody’s generates significant revenues from credit rating and analytics services. These services require relatively lower ongoing capital investment compared to manufacturing or heavy infrastructure, aligning with Buffett’s preferred business attributes. Forbes
- Strong track record: Since Berkshire first acquired Moody’s back in 2000 (via the spin‑off from Dun & Bradstreet), the holding has delivered massive returns. For example, returns of over 1,800% (since 2011) compared to significantly lesser gains for the broader S&P 500. Forbes
- Pricing power & demand stability: Moody’s enjoys durable demand for its credit ratings, risk analysis, and financial services provided to issuers, investors, and regulators—industries that are rarely fully disrupted and that tend to generate recurring revenue.
- Buffett’s commitment over decades: Unlike many positions that Buffett has trimmed or sold off, Moody’s has been largely retained across market cycles. That signals conviction.
Comparing Mastercard vs Moody’s as Warren Buffett Stocks
| Feature | Mastercard (MA) | Moody’s (MCO) |
|---|---|---|
| Portfolio weight | ~0.87% of Berkshire’s public equity portfolio (~$2.24B) | ~4.81% of public equities (~$12.37B) |
| Business model | Transactions / payments network; capital‑light; benefits from global digital adoption | Ratings & analytics; subscription/repeat business; strong pricing power |
| Growth drivers | E‑commerce, fintech, global consumption, cross‑border payments | Regulation, issuance of bonds/debt, financial health analytics demand |
| Risks | Regulatory pressure, competition, currency fluctuations | Credit cycle risk, regulatory scrutiny, accuracy/reputation concerns |
Why These Warren Buffett Stocks Are “Buy and Hold” Material
Buffett has famously said that his favorite holding period is “forever.” These two stocks embody that mentality. Here’s what makes them especially suited for investors seeking long‑term wealth:
- Durability: Both Mastercard and Moody’s operate in sectors, financial infrastructure, and credit/risk analytics that are deeply embedded in the global economy. Even in downturns, people use payment networks and need credit ratings.
- Margin stability: Mastercard has high incremental margins with growing scale. Moody’s is insulated from many cost pressures because its core services are not resource‑intensive manufacturing, but rather intellectual property, modeling, regulation, and human expertise.
- Management quality: Buffett values strong leadership. He tends not to micromanage, but his long‑term positions often indicate trust in the companies’ leadership to maintain performance.
- Low capital intensity: As noted, both companies don’t require huge capital outlays for infrastructure expansions compared to, say, energy or heavy industry, meaning more free cash flow that can be reinvested or returned to shareholders.
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What the Latest Data Suggests
- As of the latest filings (June 30, 2025), Moody’s has increased its representation in Buffett’s portfolio, ranking among the top 7 holdings.
- Mastercard remains a smaller percentage, but its consistency and long history in the portfolio. Buffett first bought Mastercard back in Q1 2011 and has made several buys and sells around it – suggests that Buffett sees value over time in its business.
Is It Time to Buy These Warren Buffett Stocks?
If you’re investing like Warren Buffett and looking for businesses you can hold through market cycles then the case for Moody’s is quite strong right now.
It’s one of his biggest public equity bets, and its growth, margins, and pricing power all align with Buffett’s criteria.
Mastercard is also appealing, especially if you believe in the secular trend toward digital payments, financial technology expansion, and global commerce.
It may not be his biggest financial stock, but it’s a quality one and oftentimes, Buffett’s smaller positions grow over time as conviction and market conditions improve.
For investors in the U.S. seeking Warren Buffett Stocks, these two offer a blend of growth, stability, and time-tested competitive advantages.
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