5 Long-Term Stocks to Buy and Hold According to Warren Buffett

1. Visa Inc. (NYSE:V)

Number of Hedge Fund Holders: 166

Berkshire’s Holding Period: 11 Years

Visa Inc. (NYSE:V) has been part of the Berkshire portfolio since the third quarter of 2011. In Q2 2022, Berkshire Hathaway owned about 8.3 million Visa Inc. (NYSE:V) shares, worth $1.6 billion, representing 0.54% of the total 13F securities. It is one of the most notable long-term stocks to buy and hold according to Warren Buffett. 

On August 16, Daiwa analyst Kazuya Nishimura downgraded Visa Inc. (NYSE:V) to Neutral from Outperform with a price target of $225, down from $230. While Visa Inc. (NYSE:V) continues to deliver an upbeat growth outlook amid a recovery in cross-border travel, the analyst sees less scope for earnings to exceed market forecasts. However, he still rates the firm’s growth prospects in the medium to long-term highly. 

Among the hedge funds tracked by Insider Monkey, Chris Hohn’s TCI Fund Management is the leading position holder in Visa Inc. (NYSE:V), with almost 20 million shares worth around $4 billion. Overall, Visa Inc. (NYSE:V) was found in 166 hedge fund portfolios at the end of Q2 2022, compared to 159 funds in the prior quarter. 

Here is what Polen Global Growth Fund has to say about Visa Inc. (NYSE:V) in its Q1 2022 investor letter:

“We added to both Visa and Mastercard during the final quarters of 2021, based on the belief that both businesses were trading at attractive prices and poised to deliver, double-digit returns over the next three to five years. Cross-border transactions–a highly profitable business segment for both companies–represent roughly 10% of Visa and Mastercard’s volumes and 25% of their gross revenues, so lockdowns have severely impacted this segment due to stifled travel. While it was impossible to know when people would begin traveling again, we accepted this reality with the belief that travel would eventually return. Both companies have commented that as soon as a country or geography reopens, cross-border volumes reignite, amplifying each business’s growth and profitability. We think these near- term headwinds have created an attractive long-term investment opportunity.”

You can also take a look at Top Ten Semiconductor ETFs to Buy in 2022 and 8 Restaurant Stocks to Avoid as Americans Begin to Cut Spending.

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