What Makes Visa (V) a Steady Compounder?

The London Company, an investment management company, released “The London Company Large Cap Strategy” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. U.S. equities increased in the fourth quarter and most of the major indices saw positive gains. The quarter’s economic data was mixed but generally encouraging. The portfolio returned 0.8% (0.6% net) during the quarter compared to a 2.8% increase for the Russell 1000 Index. Positive sector exposure has contributed to offset the negative impact of stock selection on the relative performance. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.

In its fourth quarter 2024 investor letter, The London Company Large Cap Strategy emphasized stocks such as Visa Inc. (NYSE:V). Visa Inc. (NYSE:V) is a payment technology company. The one-month return of Visa Inc. (NYSE:V) was 4.60%, and its shares gained 23.55% of their value over the last 52 weeks. On February 24, 2025, Visa Inc. (NYSE:V) stock closed at $349.86 per share with a market capitalization of $674.883 billion.

The London Company Large Cap Strategy stated the following regarding Visa Inc. (NYSE:V) in its Q4 2024 investor letter:

“Visa Inc. (NYSE:V) – V’s competitively advantaged and resilient business model makes it a steady compounder. The stock price rallied a bit in November following the election as antitrust enforcement may be looser under the new administration. This is relevant for V’s who is currently facing an antitrust case from the Department of Justice (filed in September), and regularly engages in acquisitions to grow.”

Is Mastercard Incorporated (MA) the Best Major Stock to Buy According to Hedge Funds?

A woman using a payment terminal at the checkout of a store showing payment products and solutions.

Visa Inc. (NYSE:V) is in 6th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 181 hedge fund portfolios held Visa Inc. (NYSE:V) at the end of the fourth quarter which was 165 in the previous quarter. Visa Inc. (NYSE:V) had a strong start to fiscal year 2025 with $9.5 billion in net revenue, up 10% year-over-year, and a 14% increase in EPS. While we acknowledge the potential of Visa Inc. (NYSE:V) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed Visa Inc. (NYSE:V) and shared the list of companies that are buying back their stock in 2025. In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.