We recently published a list Top 10 shares to buy according to Akre Capital Management. In this article we will take a look where Moody’s Corporation (NYSE: MCO) stands against other top stocks to buy according to Akre Capital Management.
AKR Cappality Management Follows a disciplined investment philosophy aimed at identifying exceptional companies managed by honest and capable leaders who wisely reinvest the free cash flow. This approach, referred to as the ‘three -part stool’, emphasizes three important factors: extraordinary companies, strong management teams and effective reinvestment strategies. The primary objective of the company is to worsen investor capital at above -average rates while retaining a lower risk level compared to industrial standards. Led by founder Chuck Akre until 2020, the company has consistently kept to this philosophy and has produced strong results over the years.
The basis of Akre Capital’s investment strategy is based on the principle that long -term efficiency correlates closely with the return on the capital of an owner, based on stable valuations and no benefits. Historically, the average return on US shares was around 9% to 10%, in accordance with book value growth per share. Akre Capital wants to perform this benchmark better by selecting companies with superior return profiles, in the conviction that these “compound machines” are the best way to achieve accumulation of sustainable wealth. The company focuses on patience and discipline, opposes short -term marketing fluctuations in favor of long -term growth.
Unlike many asset managers, Akre Capital does not relate to setting specific sales goals when acquiring shares. Instead, the potential investments evaluates with the intention of holding them indefinitely, only sells when one of the corners of the “three -part stools” is affected. This long -term approach distinguishes the company of Wall Street’s frequent short -term focus on quarterly profit surprises. Instead of responding to small profit fluctuations, AKRE Capital continues to work for companies with solid economic Fundamentals, viewing temporary price decreases as possibilities to acquire high -quality companies in attractive ratings.
Another important distinguishing factor of Akre Capital is the ability to capitalize on market -effections. The company benefits from Wall Street’s obsession with the short -term profit reports, often with the help of quarterly “misses” as possibilities to invest in undervalued companies with a strong long -term potential. With a focus on growth over periods of five and ten years, AKRE Capital prioritizes the economic value per share rather than short -term movements on stock price. This steadfast dedication to its investment philosophy has enabled the company to consistently achieve its goal to worsen capital and reduce the risk.
Charles T. “Chuck” Akre, Jr. is an experienced asset manager with more than five decades of experience with the supervision of private funds, investment funds and separately managed accounts. He founded Akre Capital Management in 1989 after 21 years of spending at Johnston, Lemon & Co., a NYSE member company, where he received expertise in research, asset management and branch activities. During his time there he developed a deep understanding of effects and investment strategies, which laid the foundation for tackling his own company.
From 1993 to 2000, Akre Capital Management operated under the umbrella of Friedman, Billings, Ramsey & Co. In Washington, DC, and offers Chuck extra resources to refine and expand his investment philosophy. In 2000, however, he chose to take the company private again, with the emphasis on independence and a long -term investment approach. He moved Akre Capital to Middleburg, Virginia, a national setting that reflected his preference for a targeted and patient investment process, free from the distractions of the short -term mentality of Wall Street.
At Akre Capital, Chuck Akre’s leadership has formed the success of the company in the long term and ensures consistent capital growth for investors. Over the years he has built up a reputation for his disciplined and insightful approach to asset management. Today Akre continues to contribute to his expertise as chairman of Akre Capital Management. He works together with John Neff, the portfolio manager of the AKRE Focus Fund, ensuring that the investment principles of the company remain intact. With decades of experience and a dedication to compiling capital at superior rates, the influence of Chuck Akre in the investment world remains considerable.
From the most recent application for the fourth quarter of 2024, Akre Capital Management manages around $ 11.56 billion in 13F effects. The company maintains a highly concentrated portfolio, with its top ten holdings accounting for 94.82% of the total assets. This targeted investment approach reflects the dedication of Akre Capital to select a small group of high -quality companies with a strong growth potential and disciplined management.
The shares discussed below were chosen from the Q4 2024 13F archives of Akre Capital Management. They are composed in the rising order of the importance of the Hedgefonds in them on December 31, 2024. To help readers with more context, we have included the hedge funds sentiment with regard to each shares using data from 1009 hedge funds followed by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the shares that stack hedge funds? The reason is simple: our research has shown that we can surpass the market by imitating the best share choices of the best hedge funds. The strategy of our quarterly newsletter selects 14 CAP and Large-CAP shares every quarter and has returned 373.4% since May 2014 and has reported its benchmark with 218 percentage points (See more details here).
Is Moody’s Corporation (MCO) the top stock to buy according to Akre Capital Management?
A businesswoman who uses a digital device to control a workflow orchestation process, to illustrate the versatility of the company in critical activities.
Number of holders of hedge funds from Q4: 91
Akre Capital Management’s Equity Stake: $ 1.46 billion
Moody’s Corporation (NYSE: MCO), a leading financial service provider, reported strong financial results for 2024, driven by substantial growth in both its creditworthiness and analysis companies. The total turnover achieved $ 7.09 billion, which marked an increase of 20% of $ 5.92 billion in 2023. These impressive performance was fed by profits in Moody’s Investors Service (MIS) and Moody’s Analytics (MA), which offer essential credit assessments and financial analysis aids. Moody’s ability to take advantage of the market demand for data -driven insights and solutions for risk assessment has strengthened its reputation as an important player in the financial sector.
Moody’s Analytics Division generated $ 3.3 billion in income, which reflects an increase of 8% on an annual basis, with strong contributions from its decision-making solutions, research and insights and data and information sessions. In the meantime, Moody’s Investors Service reported an outstanding increase in turnover from 33% to $ 3.79 billion, benefiting from broad growth in business financing, structured finances, financial institutions and public, project and infrastructure financing. This increase emphasizes the constant dependence on assessments and analyzes by Moody’s Corporation (NYSE: MCO) on global financial markets, which strengthens the competitive advantage.
Despite higher operating costs, which rose by 15% to $ 1.95 billion, and an increase in sales, general and administrative costs to $ 1.74 billion, Moody’s Corporation (NYSE: MCO) provided strong profitability. Business income rose 35% to $ 2.88 billion, while the net result rose to $ 2.06 billion out of $ 1.61 billion in the previous year. Diluted profit per share grew to $ 11.26, which reflects the ability of the company to effectively manage the costs, while the income basis is expansion. Although the effective tax rate rose to 23.7% compared to 16.9% because of last year’s tax benefits, Moody has retained a strong financial position, so that the year was terminated by $ 2.41 billion in cash and kasequalents.
As a world leader in credit assessments and financial information, Moody’s Corporation (NYSE: MCO) continues to benefit from the growing demand for aids for risk assessments and analyzes, in particular in uncertain economic environments. With a solid track record of revenue and profit growth, strategic expansion of analyzes and a strong balance, Moody remains a top stock to buy for investors looking for value and resilience in the financial sector.
Generally, MCO State 3rd On our list of top stocks to buy according to Akre Capital Management. Although we recognize the potential for MCO as an investment, our conviction is that some AI shares have a greater promise for supplying a higher efficiency within a shorter period of time. If you are looking for an AI share that is promising than MCO, but that acts with less than 5 times its income, view our report on the Cheapest AI stock.
Read next: 20 best AI shares to buy now And 30 best shares to buy now according to billionaires.
Publication: none. This article was originally published on Insider Monkey.
