10 Best Fundamental Stocks to Buy According to Billionaires

4. Visa Inc. (NYSE:V)

5-year Revenue Growth: 9.3%

5-year Net Income Growth: 10.05%

Number of Billionaire Investors: 26

Number of Hedge Fund Holders: 181

Visa Inc. (NYSE:V) operates as a payment technology company in the US and internationally. The company’s strategic focus on expanding value-added services (VAS) and establishing new payment flows places it for sustained growth moving forward. Apart from providing additional revenue streams, these services enhance the company’s value proposition to issuers, acquirers, and merchants. Through providing a comprehensive suite of services over and above the basic transaction processing, Visa Inc. (NYSE:V) can deepen the relationships with partners as well as increase the switching costs, further improving the competitive moat.

The company’s comprehensive suite of value-added services spans 5 categories — Issuing Solutions, Acceptance Solutions, Risk and Identity Solutions, Open Banking Solutions, and Advisory Services. Visa Inc. (NYSE:V) has completed the acquisition of Featurespace, which is a developer of real-time AI payments protection technology that prevents and mitigates payments fraud and financial crime risks. With real-time payments becoming more prevalent, the advanced fraud detection systems would be critical. Also, WSJ reported that Visa Inc. (NYSE:V) has offered Apple a ~$100 million payment in an effort to get the tech giant’s credit card as part of the battle between the well-established payment networks.

Meridian Funds, managed by ArrowMark Partners, released its Q4 2024 investor letter. Here is what the fund said:

“Visa Inc. (NYSE:V) is the world’s largest retail electronic payments network. We hold Visa in the portfolio because of its formidable competitive moat, built on network effects spanning billions of cards and millions of merchants globally. The company continues to benefit from the secular shift toward electronic payments while expanding its portfolio to include high-growth adjacent offerings. While U.S. market penetration is mature, international markets—particularly in emerging economies, where cash usage remains prevalent— offer significant growth opportunities. Visa’s operating model demonstrates strong leverage, with incremental revenue efficiently flowing to the bottom line. This quarter, Visa outperformed expectations across key metrics, with payment volumes and transaction growth proving resilient despite macro uncertainties. Looking ahead, we anticipate continued momentum into fiscal 2025, driven by the ongoing transition to digital payments, international expansion, and the scaling of newer business lines.”