Monodispersed cobalt nanoparticles (NPs) with controllable size (8-14 nm) have been synthesized using thermal decomposition of dicobaltoctacarbonyl in organic solvent. The as-synthesized high magnetic moment (125 emu/g) Co NPs are dispersible in various organic solvents, and can be easily transferred into aqueous phase by surface modification using phospholipids. However, the modified hydrophilic Co NPs are not stable as they are quickly oxidized, agglomerated in buffer. Co NPs are stabilized by coating the MFe(2)O(4) (M = Fe, Mn) ferrite shell. Core/shell structured bimagnetic Co/MFe(2)O(4) nanocomposites are prepared with tunable shell thickness (1-5 nm). The Co/MFe(2)O(4) nanocomposites retain the high magnetic moment density from the Co core, while gaining chemical and magnetic stability from the ferrite shell. Comparing to Co NPs, the nanocomposites show much enhanced stability in buffer solution at elevated temperatures, making them promising for biomedical applications.