We recently published a list of 12 Best Warren Buffett Stock Picks For Beginners. In this article, we are going to take a look at where Visa Inc. (NYSE:V) stands against other best Warren Buffett stocks to invest in.
Warren Buffett, one of the most renowned names in the world of finance, was inspired by two famous economists from the 1930s, Ben Graham and Philip Fisher. From Graham, Buffett learned the idea of a margin of safety, which means he seeks companies whose stocks are trading for less than what their assets are actually worth. He also picked up Graham’s belief that it is pointless to obsess over daily market ups and downs, since real success comes from holding investments for the long term. From Fisher, Buffett developed a strong focus on the quality of a company’s management. He realized that great leadership can make a significant difference in a business’s long-term value. Fisher also warned that over-diversifying could backfire, making it harder to properly monitor each investment. Buffett clearly follows this thinking, since his $267 billion portfolio is concentrated in just 38 stocks as of Q4 2024.
Warren Buffett’s investment strategy is a masterclass in disciplined and fundamentals-driven investing. His focus is on companies with durable competitive advantages, which he refers to as economic moats, combined with strong management and solid capital allocation. The Oracle of Omaha is against chasing trends. Instead, he looks for long-term value and buys only when a company is trading below its intrinsic worth. Buffett’s approach with the iPhone-maker is a great case in point. He was not just impressed by the hardware; he saw the value in its services ecosystem, like the App Store and iCloud, which generate consistent, high-margin revenue.
During the height of the 2008 financial crisis, the Berkshire billionaire shared a remark with investors that remains just as relevant in the current stock market landscape. He wrote:
“Over the long term, the stock market news will be good. In the 20th century, the United States endured two world wars and other traumatic and expensive military conflicts; the Depression; a dozen or so recessions and financial panics; oil shocks; a flu epidemic; and the resignation of a disgraced president. Yet the Dow rose from 66 to 11,497.”
Buffett also emphasizes simplicity and efficiency. Despite his success as a stock picker, he recommends low-cost S&P index funds for most investors, believing they outperform most professionals over time. At its core, Buffett’s strategy is not flashy, and he offers a blueprint for sustainable wealth creation. This article presents the Warren Buffett stock picks that are especially suitable for new investors looking to build a strong portfolio.
Is Visa Inc. (V) the Best Stock to Buy and Hold for 20 Years?
A close-up of a modern payments terminal with a pile of credit cards on the side.
Our Methodology
For this article, we explored Warren Buffett’s Q4 2024 portfolio, picking 12 stocks with the highest hedge fund sentiment. These stocks are backed by Wall Street hedge funds and the Oracle of Omaha himself. The stocks are ranked in ascending order based on the number of hedge fund holders as per Insider Monkey's Q4 2024. We also included the value of Berkshire Hathaway’s stake in each company for further context.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Visa Inc. (NYSE:V) is a global fintech company that ranks 2nd on our list of the top Warren Buffett stock picks for beginners. On February 21, Keefe, Bruyette & Woods reiterated an Outperform rating on Visa with a $400 price target. Analysts observed that even with a maturing card market, Visa’s focus on innovation, global expansion, and stronger client relationships is expected to keep its revenue growing at a double-digit pace.
On March 3, Visa Inc. (NYSE:V) announced that its Tap to Phone technology, which allows smartphones to process payments, has grown 200% over the past year, helping millions of small businesses accept contactless payments. It is gaining traction in the US, UK, and Brazil, making payment processing easier and more efficient for business owners. Visa is expanding this technology with new features like Tap to Add Card and Tap to Send, making payments simpler and more secure for everyone.
For Q1 FY2025, Visa Inc. (NYSE:V) reported a 5% increase in GAAP net income, reaching $5.1 billion, and a 10% rise in revenue, which came in at $9.5 billion. This growth was fueled by strong performance in payments volume, cross-border transactions, and processed transactions. Payment volume grew 9%, while cross-border transactions surged by 16%. Service revenue and data processing revenue were also up by 8% and 9%, respectively. Visa’s cash and investments totaled $16.1 billion by the end of the quarter.
According to Insider Monkey’s fourth quarter database, 181 hedge funds were bullish on Visa Inc. (NYSE:V), compared to 165 funds in the prior quarter. Chris Hohn’s TCI Fund Management was the biggest stakeholder of the company, with 16.8 million shares valued at $5.30 billion.
Overall, V ranks 2nd among the best Warren Buffett stock picks for beginners. While we acknowledge the potential of 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 time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than V but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
