Group 1 - Warren Buffett's investment strategy continues to focus on dividend stocks, with Moody's being a significant part of Berkshire Hathaway's portfolio, comprising 3.6% of its total holdings [2][4] - Moody's stock has appreciated significantly since Berkshire Hathaway acquired it, with a current valuation of approximately $11 billion from an initial investment of $248 million, representing a 4,400% increase [4] - The annual dividend from Moody's is currently $4.12 per share, leading to a yield on the cost basis of 41.2%, allowing Berkshire Hathaway to recoup its investment through dividends every few years [5] Group 2 - Moody's dividend yield is currently 0.85%, but the focus should be on the reliability and growth of dividends, which are critical for long-term investment considerations [3] - Berkshire Hathaway's management has a history of increasing dividends, which will further enhance the yield on the cost basis over time [5] - Despite Moody's strong performance, it was not included in a recent list of the top 10 stocks recommended for investment by The Motley Fool Stock Advisor [6]
You Won't Believe How Much Money Berkshire Hathaway Gets From Moody's Dividends