Group 1 - At least $3 trillion is expected to be invested in data-center-related projects over the next five years, driven by the growth in artificial intelligence and cloud computing [1][5] - Major tech companies, including Microsoft, Amazon, Alphabet, Oracle, Meta, and CoreWeave, are projected to invest $500 billion in data centers this year due to rising demand [2] - Banks will play a significant role in financing these investments, with institutional investors also expected to participate in lending alongside banks [3] Group 2 - More US data centers are anticipated to utilize asset-backed securities and private credit markets for refinancing, with a notable increase in financing size and concentration expected after record issuance levels in 2025 [4] - Despite concerns about a potential bubble due to the substantial debt required for the AI revolution, demand for new data center capacity remains strong, with growth expected to continue globally over the next 12 to 18 months [5] - The need for additional capacity is projected to arise within the next decade, although the pace of technology adoption remains uncertain [6]

Core Viewpoint - The transition of leadership at Berkshire Hathaway from Warren Buffett to Greg Abel marks a new era for the company, with Abel committed to maintaining Buffett's investment philosophy of concentrating capital in high-quality ideas [1][2]. Investment Portfolio Overview - Berkshire Hathaway's investment portfolio totals $317 billion, with a significant concentration in eight key stocks that represent 74% ($234.5 billion) of the portfolio [3]. Key Holdings - **Apple**: Represents 20.1% of invested assets; despite being the largest holding, it has seen a 74% reduction in shares over the last two years, indicating a shift in investment strategy [4][6]. - **American Express**: Accounts for 18.2% of invested assets; known for its dual role as a payment facilitator and lender, it has a strong position among affluent customers, making it resilient during economic downturns [7][9]. - **Bank of America**: Comprises 10.2% of invested assets; the position has been reduced by 45% over five quarters, reflecting concerns over interest rate sensitivity amid a rate-easing cycle [11][13]. - **Coca-Cola**: Holds 8.6% of invested assets; its long-standing presence in the portfolio since 1988 is supported by a strong dividend yield and global market presence [14][15]. - **Chevron**: Represents 6.3% of invested assets; its integrated business model allows for stable cash flow, and it has a robust capital-return program with projected buybacks of $10 billion to $20 billion annually through 2030 [16][18]. - **Moody's**: Accounts for 4.1% of invested assets; it has performed well due to its debt rating services and analytics, benefiting from low interest rates in recent years [20][21]. - **Occidental Petroleum**: Comprises 3.4% of invested assets; it has a unique focus on upstream operations and is working to reduce its net debt position [23][25]. - **Chubb**: Represents 3.1% of invested assets; it focuses on high-end property and casualty insurance, allowing for premium pricing power and attractive margins [27][29].

Core Viewpoint - Investors in the Financial - Miscellaneous Services sector should consider BB Seguridade Participacoes SA (BBSEY) and Moody's (MCO) for potential value opportunities [1] Group 1: Zacks Rank and Earnings Outlook - Both BB Seguridade Participacoes SA and Moody's have a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and an improving earnings outlook [3] - The Zacks Rank strategy targets companies with favorable earnings estimate trends, which is a key consideration for investors [2] Group 2: Valuation Metrics - BBSEY has a forward P/E ratio of 8.35, significantly lower than MCO's forward P/E of 32.56, suggesting BBSEY may be undervalued [5] - The PEG ratio for BBSEY is 2.58, while MCO's PEG ratio is 2.69, indicating that BBSEY has a more favorable valuation relative to its expected earnings growth [5] - BBSEY's P/B ratio is 5.8 compared to MCO's P/B of 23.12, further supporting the argument that BBSEY is the superior value option [6] - BBSEY has a Value grade of B, while MCO has a Value grade of F, highlighting the relative valuation strength of BBSEY [6]

Core Insights - Qualivian Investment Partners' Q3 2025 investor letter indicates strong performance, outperforming the iShares MSCI USA Quality Factor ETF by 69.2% gross and 61.3% net since inception, and exceeding the S&P 500 by 32.7% gross and 26.1% net [1] Company Performance - Moody's Corporation (NYSE:MCO) reported a one-month return of 5.22% and a 52-week gain of 6.38%, with a closing stock price of $509.65 and a market capitalization of $91.642 billion as of December 22, 2025 [2] - Moody's Corporation achieved record total revenue of $2.01 billion in Q3 2025, marking an 11% year-over-year increase, and reported adjusted EPS of $3.92, beating expectations by nearly 7% [3] - The company experienced a significant improvement in adjusted operating margins, increasing by 500 basis points to 53%, driven by strong issuance activity in its higher margin Moody's Investor Service segment [3] Hedge Fund Interest - Moody's Corporation was held by 87 hedge fund portfolios at the end of Q3 2025, an increase from 82 in the previous quarter, indicating growing interest among institutional investors [4]

Core Viewpoint - Moody's Corporation will relocate its global headquarters to 200 Liberty Street at Brookfield Place in Lower Manhattan, maintaining its over 115-year connection to New York City [1] Group 1: Company Strategy - The move is expected to be completed in 2027, representing a significant step in Moody's ongoing evolution [1] - The new headquarters aims to create world-class workspaces that enhance collaboration among teams and improve customer service [1]

Core Viewpoint - Moody's is introducing a new stablecoin rating system that could redefine how investors assess the $300 billion market for stablecoins [1] Group 1: Moody's Proposal - Moody's plans to assign deposit ratings to stablecoins based on the quality of reserve assets, market risk, and operational safeguards [1] - The proposal is open for public comment until January 29, following its announcement last Friday [1] - The increasing use of stablecoins coincides with new regulatory frameworks, such as the U.S. "Genius Act" passed in July, which provides a regulatory framework for stablecoins [1] Group 2: Evaluation Methodology - Moody's will evaluate the credit quality of each asset in the stablecoin reserve pool to calculate a weighted average [2] - The rating will be constrained by the weakest link, which is the lowest-rated asset in the reserves [2] - Five categories of liquid assets will be assessed, with cash deposits and central government securities receiving higher ratings [2] Group 3: Risk Considerations - The proposal includes considerations for liquidity and governance, as well as potential stress scenarios [2] - Moody's will assess technical risks, such as blockchain security vulnerabilities that could complicate transaction verification [2] - The new rating will not be used to evaluate the stability or investment performance of stablecoins, but rather their likelihood of timely redemption [3]

Core Points - The abrdn Income Credit Strategies Fund has declared a cash distribution of $0.328125 per share for its 5.250% Series A Perpetual Preferred Shares, payable on December 31, 2025 [1] - The Series A Preferred Shares are rated "A2" by Moody's and have an annual dividend rate of $1.3125 per share, issued at $25.00 per share on May 10, 2021 [2] - Distributions may come from various income sources, including net realized capital gains and return of capital, with tax reporting details to be provided in January 2026 [3] Company Information - Aberdeen Investments is the trade name for the investment business of Aberdeen, which includes affiliated registered investment advisers such as abrdn Inc., abrdn Investments Limited, and abrdn Asia Limited [4] - The Fund's shares are traded on the secondary market, and their investment return and principal value may fluctuate, potentially trading at a premium or discount to the net asset value [5]

Core Viewpoint - RBC Capital raised the target price for Moody's from $550 to $610 while maintaining a "Buy" rating [1] Group 1 - The target price adjustment reflects a positive outlook on Moody's performance [1] - The "Buy" rating indicates confidence in Moody's growth potential [1]

Core Insights - The article compares BB Seguridade Participacoes SA (BBSEY) and Moody's (MCO) as potential undervalued stocks for investors interested in the Financial - Miscellaneous Services sector [1] Group 1: Company Rankings and Earnings Outlook - Both BBSEY and MCO hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and an improving earnings outlook for both companies [3] - The Zacks Rank emphasizes earnings estimates and revisions, which are crucial for value investors [2] Group 2: Valuation Metrics - BBSEY has a forward P/E ratio of 7.80, significantly lower than MCO's forward P/E of 33.81, suggesting BBSEY may be undervalued [5] - BBSEY's PEG ratio is 2.20, while MCO's PEG ratio is 2.80, indicating BBSEY has a more favorable valuation relative to its expected earnings growth [5] - BBSEY's P/B ratio is 5.61 compared to MCO's P/B of 21.35, further supporting the argument that BBSEY is the superior value option [6] - Based on these valuation figures, BBSEY has a Value grade of B, while MCO has a Value grade of D, highlighting BBSEY's stronger position in terms of value [6]

Core Insights - Moody's Corporation (MCO) is a leading provider of financial intelligence globally, with a market capitalization of $87.56 billion, categorizing it as a "large-cap" stock [1] Company Overview - Moody's Investors Service offers impartial credit evaluations and research to assess the creditworthiness of various entities, aiding investors in evaluating credit reliability [1] - Moody's Analytics provides data analysis, software platforms, forecasting models, risk mitigation tools, and consulting services to enhance financial strategies [2] Stock Performance - Moody's shares reached a 52-week high of $531.93 in February and a low of $378.71 in April, with a decline of 3.7% over the past three months, while the Dow Jones Industrial Average increased by 4.6% during the same period [3] - Over the past 52 weeks, Moody's stock has declined by 2%, but it gained 2.6% in the last six months, contrasting with the Dow Jones Industrial Average's gains of 6.7% and 13.3% respectively [4] Financial Results - On October 22, Moody's reported third-quarter results for fiscal 2025, with revenue increasing by 10.7% year-over-year to a record $2.01 billion, surpassing analyst expectations of $1.96 billion [5] - The adjusted EPS for the quarter was $3.92, reflecting a 22.1% annual increase and exceeding the expected $3.70 [5] Guidance Update - Moody's raised its revenue growth guidance for the current year to the high single-digit percent range, up from the previous mid-single-digit percent guidance [6] - The adjusted EPS guidance was also increased from a range of $13.50 - $14 to $14.50 - $14.75 [6]