Friday, July 17, 2009

Patting myself on the back

Back at the end of last year, I recommended buying Moody's (MCO). If you'd followed my advice, you would've made about 45%. I still like this stock. It's not nearly as cheap as it was 7 1/2 months ago, but it's still significantly off from it's 52-week high of $43.07. I'm going to put in on a watch list.
Despite the complete lack of credibility of this business, people still treat its pronouncements as the Gospel truth. That's a great moat for a business. Plus, look at the margins. in Q1, their revenues were down from $21.8 million, 19 of which was due to dollar gaining against the pound and the euro. Think about that, revenues were down only 5% despite the fact that the company's incompetence helped create and sustain our current financial crisis.

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