10. Mastercard Incorporated (NYSE:MA)
Warren Buffett’s First Major Purchase: 2011
Berkshire Hathaway’s Latest Investment Stake: $1.76 Billion
Number of Hedge Funds Holding Stakes as of Q2: 142
Mastercard Incorporated (NYSE:MA) is a financial services company that provides technology for processing transactions and other payment-related products and services. The company has established an expansion drive to bring over 1 billion people into the digital economy. In pursuit of this objective, the company has recently initiated numerous collaborations. In August, it introduced an Open Banking initiative designed to streamline lending processes by digitally verifying income and employment status.
Mastercard Incorporated (NYSE:MA) also unveiled a payment passkey service in India, enhancing security and accelerating the speed of payments. Additionally, the company u is pursuing new growth opportunities around cryptocurrencies by allowing people to send and receive crypto using Mastercard Crypto credentials
The payments company delivered solid second-quarter results as net revenues increased by 13% while adjusted earnings soared 24%. The growth was driven by robust consumer spending and growth in cross-border volume, supplemented by expansion in value-added services.
The robust economic foundations, a diversified business model supported by robust consumer spending, solid demand for enhanced services, and the ongoing transition to digital payment methods position Mastercard Incorporated (NYSE:MA) favorably in the market.
The company has always been one of the best long-term stocks to buy, according to Warren Buffett, owing to its impressive track record in rewarding investors. The company has paid dividends consistently for 19 years, affirming its ability to generate free cash flow. Its financial health is highlighted by its ability to cover interest payments with cash flows.
As of June 2024 end, 142 out of the 912 hedge funds part of Insider Monkey’s database were the firm’s shareholders. Mastercard Incorporated (NYSE:MA)’s largest hedge fund investor is Charles Akre’s Akre Capital Management due to its $1.78 billion stake.
Here’s what L1 Capital International Fund mentioned about Mastercard Incorporated (NYSE:MA) in its Q2 2024 investor letter:
“The share prices of Mastercard Incorporated (NYSE:MA) and Visa, both long term Fund investments, have both drifted down over recent months. There have been no dramatic developments, but there has been a general slight softening in the rate of growth of consumer spending in the U.S. and globally, a court decision rejecting Mastercard and Visa’s proposed settlement of a long-lasting dispute with U.S. merchants as well as other modest adverse regulatory developments. We continue to view Mastercard and Visa as two of the highest quality businesses in the world, and both are well placed to continue to deliver attractive, risk adjusted returns to shareholders over time.”
