Group 1: Warren Buffett and Berkshire Hathaway - Warren Buffett has delivered compound annual returns of nearly 20% for Berkshire Hathaway since becoming CEO in 1965, with an investment of $100 growing to over $5.5 million today [1] - Buffett is stepping down as CEO at the end of this year, leaving behind a unique legacy [2] Group 2: Visa - Visa holds a leading market position in the global digital payments landscape, with total payment volume exceeding $14.2 trillion last year, outpacing competitors like Mastercard and American Express [4] - Visa benefits from strong network effects, collecting small fees on transactions without significant capital expenditures, resulting in high profit margins [5] - The company is well-positioned to benefit from rising digital transaction volumes, which increase during economic growth and inflationary periods, ensuring continued shareholder rewards [6] Group 3: Moody's - Moody's operates as one of the largest credit rating agencies in the U.S., controlling 80% of the overall credit ratings market in a duopoly with S&P Global, while Fitch Ratings holds a 12.5% share [9]

Core Viewpoint - The article discusses S&P Global Inc. (SPGI) in the context of its competition with Moody's Corporation (MCO), emphasizing the search for high-quality businesses for long-term investment portfolios [1]. Company Analysis - S&P Global Inc. is positioned as a competitor to Moody's Corporation, indicating a competitive landscape in the financial services sector focused on quality growth [1]. Investment Strategy - The investment strategy outlined involves identifying the best businesses globally to create a portfolio that aims to outperform the market over the long term [1].

Core Insights - The article discusses S&P Global Inc. (SPGI) in the context of its competitor, Moody's Corporation (MCO), highlighting the focus on identifying top-performing companies for long-term investment portfolios [1]. Company Analysis - S&P Global Inc. is positioned as a leading company in the financial services sector, with an emphasis on quality growth and long-term performance [1]. Investment Strategy - The investment strategy revolves around selecting the best businesses globally to create a portfolio that aims to outperform the market over time [1].

Core Insights - S&P Global Inc. is a significant player in financial information, analytics, and credit ratings, with a market cap of $149.5 billion, providing essential data for informed decision-making in global capital markets [1] Performance Overview - Over the past year, S&P Global's shares have underperformed the broader market, declining by 1.9% compared to a 14.1% increase in the S&P 500 Index [2] - In 2025, the stock has continued to lag, remaining slightly negative while the S&P 500 has risen by 16.4% year-to-date [2] Sector Comparison - The stock has also underperformed compared to sector peers, with the iShares U.S. Broker-Dealers & Securities Exchanges ETF gaining approximately 17.5% over the past year and 22.8% year-to-date [3] Financial Performance - On October 30, S&P Global reported strong third-quarter results, with revenue increasing by 9% year-over-year to $3.89 billion and adjusted EPS of $4.73, exceeding market expectations [4] - The company raised its full-year guidance, projecting 7-8% revenue growth and continued margin expansion, indicating confidence in its data, analytics, and ratings franchises [4] Earnings Expectations - For the current fiscal year ending in December, analysts anticipate a 13.1% growth in EPS to $17.76 on a diluted basis, with a strong earnings surprise history, having beaten consensus estimates in the last four quarters [5] - Among 26 analysts covering S&P Global, the consensus rating is a "Strong Buy," supported by 19 "Strong Buy" ratings, three "Moderate Buys," and four "Hold" ratings [5] Analyst Ratings - The analyst outlook has improved compared to two months ago, with 18 analysts now suggesting a "Strong Buy" [6] - JPMorgan Chase & Co. has adjusted its price target for S&P Global to $615 from $635 while maintaining an "Overweight" rating, citing the company's Q3 2025 earnings beat and raised full-year guidance [6]

Group 1: Coca-Cola - Coca-Cola has a strong brand, vast distribution network, low-cost business model, and steady demand, supporting growing cash flow and a dividend payout that has increased for 63 consecutive years [1] - The company operates an asset-light business model, where bottlers manage manufacturing and distribution, keeping capital costs lower while enjoying steady demand and pricing power [2] - Coca-Cola adapts to changing consumer tastes by offering a range of options, including low-calorie drinks, sports drinks, and energy brands, making it a staple among consumers [3] - Coca-Cola operates one of the largest beverage companies globally, with a diverse product range including soft drinks, juices, waters, teas, and coffees [4] Group 2: S&P Global - S&P Global is the largest credit rating agency in the U.S., holding a 50% market share, which provides a competitive advantage in a highly regulated industry [8] - The company has a robust data business that diversifies its earnings, providing analytics, indexes, and insights for investors, contributing to a reliable revenue stream [9] - S&P Global has a strong dividend payout history, having raised its payout for 52 consecutive years, making it a solid blue-chip stock for investors [10] Group 3: BlackRock - BlackRock is the world's largest asset manager, with over $13.5 trillion in assets under management, holding a significant share of the ETF market through its iShares family [11][12] - The company has benefited from a higher interest rate environment, with its global bond ETF assets growing from $1 trillion to $2.6 trillion from 2019 to 2024 [14] - BlackRock has a stable source of recurring revenue through fees on its products and has raised its dividend payout for 16 consecutive years, yielding 1.8% [16]

The US SEC has been scrutinizing Egan-Jones Ratings, according to people familiar with the matter, delving into the business practices of a leader in the fast-growing market for private-credit ratings. https://t.co/wO8rZu6w9O ...

Financial Performance - 3Q 2025 - S&P Global's revenue increased by 9% to $3888 million in 3Q 2025, compared to $3575 million in 3Q 2024[41] - Operating profit increased by 16% to $2026 million, with an operating margin of 52.1%, a 330 bps increase from 48.8% in 3Q 2024[41] - Net income (less NCI) increased by 19% to $1442 million, compared to $1210 million in 3Q 2024[41] - Diluted EPS increased by 22% to $4.73, compared to $3.89 in 3Q 2024[41] - Adjusted Free Cash Flow, excluding certain items, increased by 6% to $1505 million[41] Segment Performance - 3Q 2025 - S&P Global Market Intelligence revenue increased by 6% to $1236 million, with a segment operating margin of 35.6%[71] - S&P Global Ratings revenue increased by 12% to $1240 million, with a segment operating margin of 67.1%[79] - S&P Global Commodity Insights revenue increased by 6% to $556 million, with a segment operating margin of 48.1%[86] - S&P Global Mobility revenue increased by 8% to $445 million, with a segment operating margin of 43.3%[92] - S&P Dow Jones Indices revenue increased by 11% to $462 million, with a segment operating margin of 71.2%[98] Updated 2025 Guidance - The company updated its 2025 revenue growth guidance from 5%-7% to 7%-8%[110, 116] - The company updated its 2025 diluted EPS guidance from $14.35-$14.60 to $14.80-$15.05 on a GAAP basis[110] and from $17.00-$17.25 to $17.60-$17.85 on an adjusted basis[116]

Core Insights - KBRA has assigned preliminary ratings to nine classes of notes issued by Pagaya Point of Sale Holdings Grantor Trust 2025-2 and Pagaya Point of Sale Holdings Trust 2025-2, collectively known as POSH 2025-2, which is a point-of-sale unsecured consumer loan ABS transaction [1][2] Summary by Category Transaction Structure - POSH 2025-2 will issue 10 classes of notes totaling $300 million, with ratings provided for Class A through Class F Notes, Class AB, Class ABC, and Class ABCD [2] - The transaction is fully prefunded, meaning no collateral will be funded at closing, and includes an 18-month revolving period [2] - Upon the end of the revolving period or an amortization event, the amortization period will commence, during which reinvestment is not allowed, and distributions will be made sequentially to noteholders [2] Credit Enhancement - Initial hard credit enhancement levels range from 34.98% for Class A Notes to 2.18% for Class F Notes, which includes overcollateralization, subordination (except for Class F), a cash reserve account, and excess spread [1] Company Background - Pagaya Structured Products LLC, the sponsor and administrator of the transaction, is a wholly owned subsidiary of Pagaya US Holding Company LLC, which is fully owned by Pagaya Technologies Ltd., an Israeli corporation listed on NASDAQ (PGY) [3] - Pagaya Technologies is a financial technology company specializing in the lending marketplace, utilizing AI-driven credit and analysis technology [3] Rating Methodology - KBRA applied its Consumer Loan ABS Global Rating Methodology, Global Structured Finance Counterparty Methodology, and ESG Global Rating Methodology in analyzing the transaction's capital structure and Pagaya's historical data [4] - Operational reviews of Pagaya and each of the Platform Sellers were considered, along with periodic update calls and recent surveillance on each platform's KBRA-rated securitizations [4]

Core Viewpoint - The analyst maintains a buy rating for Moody's Corporation (NYSE: MCO) based on the attractive upside potential over the next two years if the company meets consensus FY28 adjusted EPS expectations [1] Group 1: Investment Philosophy - The investment approach is fundamentally driven, focusing on identifying businesses with potential for scaling and unlocking significant terminal value [1] - Key factors considered include competitive moat, unit economics, reinvestment runway, and management quality, which are essential for long-term free cash flow generation and shareholder value creation [1] - The analyst emphasizes the importance of fundamental research and targets sectors with strong secular tailwinds [1] Group 2: Professional Background - The analyst has 10 years of experience in investment banking and is currently managing personal funds sourced from friends and family [1] - The motivation for writing on Seeking Alpha is to share investment insights and receive feedback from fellow investors [1] - The aim is to help readers focus on the drivers of long-term equity value, with a belief that good analysis should be both analytical and accessible [1]

Financial Data and Key Metrics Changes - Moody's achieved record quarterly revenue exceeding $2 billion for the first time, representing an 11% increase from the same quarter last year [5] - Adjusted operating margin reached almost 53%, up over 500 basis points year-over-year, indicating strong operating leverage [5] - Adjusted diluted EPS was $3.92, a 22% increase from the previous year, reflecting consistent earnings power growth [5][21] Business Line Data and Key Metrics Changes - Moody's Investors Service (MIS) reported a 12% revenue growth, surpassing $1 billion in quarterly revenue for the third consecutive quarter [6][21] - Revenue from private credit grew over 60% in the third quarter, driven by strong demand in fund finance and securitization [11] - Moody's Analytics (MA) delivered a 9% year-over-year revenue growth, with an 11% increase in decision solutions [12][28] Market Data and Key Metrics Changes - The issuance pipeline remains robust, with projected refunding needs over the next four years exceeding $5 trillion, a 10% compound annual growth rate from 2018 to 2025 [9] - Spec-grade bond maturities increased by over 20% in both the U.S. and EMEA regions, indicating a favorable backdrop for future issuance [10] - The number of private credit-related deals grew almost 70% in the third quarter, highlighting the sector's growth potential [10] Company Strategy and Development Direction - Moody's is focused on investing in scalable solutions across high-growth markets while simplifying its product suite [12] - The company is expanding its presence in emerging markets, including acquiring a majority interest in Meris, a leading ratings agency in Egypt [19] - Strategic partnerships, such as with Salesforce, are being leveraged to enhance customer integration and drive durable growth [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the issuance environment heading into 2026, citing tight spreads and potential Fed easing as positive factors [60] - The company anticipates continued strong demand for credit insights, particularly in the private credit market amid rising concerns about credit health [70] - Management acknowledged risks related to ongoing tariff negotiations and potential government shutdown impacts on market conditions [28] Other Important Information - Moody's is increasing its full-year guidance for adjusted diluted EPS to a range of $14.50 to $14.75, implying approximately 17% growth at the midpoint [37] - Free cash flow is expected to be around $2.5 billion, with share repurchase guidance increased to at least $1.5 billion [37] Q&A Session Summary Question: Thoughts on AI in the analytics business - Management clarified that AI is being embedded into various workflow solutions and that they have developed over 50 domain-specific agents leveraging proprietary data [41] Question: Impact of record issuance in Q3 - Management noted that pull forward activity is more prevalent in spec-grade than investment-grade issuers, with healthy maturity walls expected [46] Question: Proprietary data sets in KYC solutions - Management highlighted the unique data sets used in KYC solutions, including Orbis and AI-curated news, which provide a comprehensive view of business relationships [50] Question: Differences in refi walls portrayal - Management explained that the article referenced a decline in U.S. spec-grade refi walls, which is a subset of broader maturities that remain healthy [52] Question: Outlook for issuance in 2026 - Management indicated more tailwinds than headwinds for 2026, with expectations for continued strong issuance driven by M&A activity and infrastructure investments [60]