Growth Stock Portfolio: 12 Stock Picks By Warren Buffett

8. Mastercard Incorporated (NYSE:MA)

5-year average revenue growth (YoY): 11.22%

The American credit card firm Mastercard Incorporated (NYSE:MA), which is among Warren Buffett’s Growth Stock Portfolio, provides its customers with a variety of payment processing and related services. Since its initial public offering (IPO) in 2006, Mastercard has demonstrated an impressive total return CAGR of 29.9%, making it one of the best investments throughout the years. This type of performance shows the company’s resilience and the longevity of its business strategy, which is shielded from external competition and inflation.

Raymond James maintained its Outperform rating on the stock and increased its price target from $614 to $640 after the firm reported solid earnings in the fourth quarter of 2024. The company underlined Mastercard Incorporated (NYSE:MA)’s steady performance and pointed out that although preliminary estimates might be lower, this is mostly because of fluctuations in foreign exchange rates and operating expenses associated with transactions.

Mastercard Incorporated (NYSE:MA) made $7.5 billion in revenue in the fourth quarter of 2024, a 14% increase over the same period the previous year. The company’s net income increased from $3 billion to $3.5 billion during the quarter. Customers had received 3.5 billion Mastercard and Maestro-branded cards by December 31, 2024.

At the conclusion of the quarter, Mastercard Incorporated (NYSE:MA) had more than $8.4 billion in cash and cash equivalents, while its total assets exceeded $19.7 billion. The company’s operating cash flow increased from $12 billion in fiscal year 2023 to $14.7 billion in fiscal year 2024. This financial strength enabled them to return $2.4 billion to shareholders in dividends throughout the year. It has raised dividends for 13 years in a row.