Warren Buffett’s 10 Longest-Held Stocks

4. Mastercard Incorporated (NYSE:MA)

Warren Buffett’s First Major Purchase: 2011

Berkshire Hathaway’s stake in Q3 2024: $1.96 billion

A global leader in payment technology, Mastercard Incorporated (NYSE:MA), provides services to a wide range of clients, including individuals, small and medium-sized enterprises, banks, credit unions, and government agencies. Known for its consistent dividend payments, Warren Buffett has favored the company for more than a decade.

Mastercard’s revenue increased 13% year-over-year in the third quarter of 2024, owing to strong consumer spending and improved global economic conditions. In addition, a 10% year-over-year increase in gross dollar volume and a 17% year-over-year increase in cross-border volumes show that both travel-related and overall spending continues to rise. Revenue from value-added services increased by 18%, outpacing overall growth, and operating margins rose to 59.3%, resulting in a 16% increase in EPS.

On January 14, Seaport Global downgraded its rating for Mastercard Incorporated (NYSE:MA) from Buy to Neutral. The firm stated that, while the overall narrative surrounding the payments processor remains positive, the potential for revenue growth in 2025 appears to be more constrained. This assessment is made in light of MasterCard’s extensive international exposure compared to its competitor Visa.

Qualivian Investment Partners stated the following regarding Mastercard Incorporated (NYSE:MA) in its Q3 2024 investor letter:

“Mastercard Incorporated (NYSE:MA): Q2 2024 revenues and EPS beat consensus expectations, growing 11% (+13% on a constant currency, CC, basis) and 24% (+27% on a CC basis) respectively. Overall payments volume increased 9%, with highly profitable cross-border volumes growing 17%. Management qualified their expectations for a solid FY2024 anchored around continued stable consumer spending, while noting there is uncertainty regarding the overall macroeconomic backdrop heading into the back half of 2024 and 2025. In the event of a weakening consumer, management noted they would adjust investment priorities as well as the company’s cost structure as appropriate if trends softened further. We continue to expect that over the longer term, MA will continue to drive and benefit from the digitization of payments globally.”