A £500 monthly investment at Buffett’s 19.8% return would yield £10.9 million in 30 years

Investing £500 a month for 30 years at a 19.8% annual return results in £10.9 million. The same £500 monthly investment in the S&P 500 would result in £1.3 million. Warren Buffett achieved a 19.8% average annualised return over the long term. The S&P 500 has generated a long-term average total return of 10.6% per year. Moody’s (NYSE:MCO) has delivered a nearly 4,200% total return since Buffett acquired shares in October 2000. Moody’s operates as a near-duopoly in credit ratings, functioning as a toll booth to the public debt markets. The company generates enormous, predictable cash flows from recurring credit rating fees. Moody’s has diversified into data and risk analytics software, creating additional recurring revenue streams. Demand for debt—and thus credit ratings—varies with economic and geopolitical cycles, introducing revenue cyclicality. AI tools could disrupt Moody’s data and risk analytics segment. For long-term investors, Moody’s remains a potential quality compounder in the Buffett tradition.