Munger Mode rating: 4 out of 5 — Buy. Our own rating from the research report below, on business quality first: moat durability and management, with price separating the top three.
We have spent our lives looking for businesses that operate like toll bridges — assets that sit astride an unavoidable flow of commerce and collect a fee on every crossing, with almost no capital required to maintain the bridge. Moody's is one of the finest toll bridges in the world. It collects a few basis points on trillions of dollars of debt issuance every year, operates in a legally fortified duopoly, raises prices annually without losing a single meaningful customer, and converts nearly every dollar of net income into free cash. The business earns returns on tangible capital so high that the number is almost embarrassing to print. The question with Moody's is never the quality of the business. It is always the price.
Recent filings analysed: 8-K (2026-08-12), 10-Q (2026-07-23), 8-K (2026-07-22), 10-Q (2026-04-23).
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