In this piece, we will take a look at the five finance and investment stocks to invest in according to Warren Buffett’s Berkshire Hathaway. To learn more about the famous hedge fund, its owner, and more stocks, take a look at the 10 Finance & Investment Stocks to Invest in According to Warren Buffett’s Berkshire Hathaway.
5. Visa Inc. (NYSE:V)
Berkshire Hathaway’s Stake Value: $1.7 billion
Percentage of Berkshire Hathaway’s 13F Portfolio: 0.54%
Number of Hedge Fund Holders: 142
Visa Inc. (NYSE:V) is an American payments firm that is headquartered in San Francisco, California. Its platform allows customers such as consumers, financial institutions, government entities, and business partners to conduct digital payments.
Berkshire Hathaway held a $1.4 billion stake in Visa Inc. (NYSE:V) by the end of Q4 2021. It came in the form of 8.2 million shares and represented 0.43% of the investment firm’s portfolio. During the same time period, 142 of the 924 hedge funds polled by Insider Monkey owned a stake in the company.
Visa Inc. (NYSE:V) reported $7 billion in revenue and $1.81 in non-GAAP EPS for its fiscal first quarter, beating analyst estimates for both. Mizuho raised the company’s share price target to $235 from $220 in February 2022, due to its strong fiscal Q4 earnings results.
Visa Inc. (NYSE:V)’s largest investor is Chris Hohn’s TCI Fund Management which owns 23 million shares worth $5 billion.
Artisan Partners mentioned the company in its fourth quarter 2021 investor letter. Here is what the fund said:
“We initiated two new positions in Q4, adding Visa. Visa is a global payments company and is one of the four major US credit card networks (along with Mastercard, American Express and Discover). Visa is accepted at over 80 million merchant locations in 200 countries, interacts with 15 thousand financial institutions and processed 165 billion transactions with $13 trillion of payments and cash volume in the 12-month period ending September 2021. We have always admired Visa’s business, but its valuation prevented it from getting over the hurdle and into the portfolio. As of late, the stock has been caught up in indiscriminate selling as part of a larger unwind trade in a richly valued fintech space. Concerns also exist about Visa’s slowdown in cross-border transactions due to COVID and its net-revenue sharing arrangements with Amazon. This created an opportunity to purchase a very highquality business that benefits from substantial barriers to entry, network effects and several structural growth drivers, including consumer spending growth, the shift from cash to card, increasing ecommerce penetration, market share growth and global expansion. We believe Visa has a long runway for revenue growth as cash and checks continue to lose share. Consumers can’t use cash and checks online, after all. From a “safer” perspective, the company has a rocksolid balance sheet and has a high conversion of net income to free cash flow, which it uses for share repurchases, dividend growth and tuck-in acquisitions.”
