Dmitiry Nkahle l Bebylon Ceptial.

$MSCI CEO bought more shares at $562

Warren Buffett on the ratings agencies: “The ratings agencies have had and still have under current conditions an incredibly wonderful business. It takes no capital at all, the pricing power is significant.” Buffett was talking about $SPGI and $MCO. Let’s focus on $SPGI. What makes $SPGI specifically extraordinary is what sits alongside the 𝐑𝐚𝐭𝐢𝐧𝐠𝐬 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬 — the 𝐈𝐧𝐝𝐢𝐜𝐞𝐬 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬. Together, these two segments represent perhaps the most capital-light, pricing-power-rich combination in public markets. 𝐑𝐚𝐭𝐢𝐧𝐠𝐬 𝐨𝐩𝐞𝐫𝐚𝐭𝐢𝐧𝐠 𝐦𝐚𝐫𝐠𝐢𝐧𝐬: 𝟔𝟒.𝟑𝟒% (𝐋𝐓𝐌) 𝐈𝐧𝐝𝐢𝐜𝐞𝐬 𝐨𝐩𝐞𝐫𝐚𝐭𝐢𝐧𝐠 𝐦𝐚𝐫𝐠𝐢𝐧𝐬: 𝟔𝟖.𝟗𝟗% (𝐋𝐓𝐌) Both above 60%. Both requiring virtually no capital to sustain. Both collecting tolls on the global financial system whether markets rise or fall — ratings on every bond issued, indices on every dollar of AUM benchmarked against the S&P. And the quality of the entire business is set to improve further. $SPGI is divesting its Mobility division — a business running at 21.62% operating margins (LTM). Removing the lowest-margin segment from the portfolio concentrates the earnings power in the two strongest segments. The business gets cleaner, higher-margin, and more focused. Now the valuation. 𝐋𝐓𝐌 𝐨𝐩𝐞𝐫𝐚𝐭𝐢𝐧𝐠 𝐩𝐫𝐨𝐟𝐢𝐭 𝐟𝐫𝐨𝐦: 𝐑𝐚𝐭𝐢𝐧𝐠𝐬: $𝟑.𝟏𝟒𝐁 𝐈𝐧𝐝𝐢𝐜𝐞𝐬: $𝟏.𝟑𝟑𝐁 𝐂𝐨𝐦𝐛𝐢𝐧𝐞𝐝: $𝟒.𝟒𝟕𝐁 — from just two segments. At today’s market cap of $119B, you are paying approximately 26x LTM operating profit for those two businesses while the overall portfolio quality is actively improving. It appears Chris Hohn, Pat Dorsey, and Li Lu — among the most rigorous fundamental investors in the world (as well as recent $SPGI insider purchases) — are seeing exactly this in their latest 13Fs. Sometimes the best ideas aren’t hidden. They’re hiding in plain sight and you just have to be a contrarian with strong conviction and patience. ___ 🎙️ Berkshire 2010 Annual Meeting | CNBC Warren Buffett Archive

Li Lu is widely known as an excellent investor. He is the Founder of Himalaya Capital, and one of Charlie Munger’s closest friends, mentees, and investment partners. Munger called him the “Chinese Warren Buffett.” Here’s what Li Lu did with $GOOG $GOOGL 𝟐𝟎𝟐𝟎 — Initiated a position, building it to 11.4% of his fund 𝟐𝟎𝟐𝟐 — Added aggressively during peak fear and uncertainty, growing it to over 22% 𝐓𝐨𝐝𝐚𝐲 (𝐚𝐬 𝐨𝐟 𝟏𝟐/𝟑𝟏/𝟐𝟓 𝟏𝟑𝐅) — $GOOG represents 43% of Himalaya Capital Munger said it best: “Investing is where you find a few great companies and then sit in your ass.” ___ A couple months ago I wrote about two camps of Google investors — those who bought at 15x earnings amid maximum fear, and those who bought after the AI breakout became undeniable. Both camps can be right. Different entry points. Different sources of edge. Li Lu represents a third camp entirely — one that very few investors are capable of occupying. He was in both simultaneously. He saw $GOOG as a deeply undervalued business — recognizing the asymmetric risk/reward at a lower earnings multiple when fear was at its peak. But unlike many from that first camp who trimmed or exited as the stock recovered, Li Lu maintained his conviction even as the company’s multiple expanded as the AI narrative became undeniable — the very thesis that drove the second camp. That’s what makes this so commendable. Most investors anchor hard to one view and struggle to see beyond it. The buyer at a low earnings multiple takes profits when sentiment recovers. Li Lu didn’t anchor to that narrative. He saw the full picture from the beginning — and had the conviction to size and hold accordingly.