We recently released a list 12 Best Warren Buffett's Beginner Stock Draft Choice. In this article, we will look at the location where Visa Inc. (NYSE:V) invests with other best Warren Buffett stocks.
Warren Buffett is one of the most famous names in the financial world, inspired by two famous economists in the 1930s, namely Ben Graham and Philip Fisher. Buffett learned the idea of a safe leeway from Graham, which means that the company he seeks to trade in stocks is lower than the actual value of its assets. He also put forward Graham's belief that it is meaningless to the ups and downs of the daily market, because real success comes from long-term investment. Buffett starts from Fisher and focuses on the quality of the company's management. He realized that great leadership can have a significant impact on the long-term value of a business. Fisher also warned that overdiversity can backfire and it is difficult to properly monitor every investment. Buffett clearly followed this idea, as his $267 billion portfolio was concentrated in just 38 stocks as of the fourth quarter of 2024.
Warren Buffett's investment strategy is a masterclass of disciplined and fundamental-driven investment. His focus is on companies with lasting competitive advantages, which he calls an economic moat, coupled with strong management and stable capital allocation. Omaha's Oracle opposes the pursuit trend. Instead, he seeks long-term value and buys only if the company trades below its intrinsic value. Buffett's approach with iPhone manufacturers is a good example. He was not only impressed by the hardware. He sees value in its service ecosystem, such as the App Store and Icloud, which generate consistent high profit revenue.
At the height of the 2008 financial crisis, Berkshire billionaires shared a review with investors that remained equally relevant to the current stock market landscape. He wrote:
"In the long run, stock market news will be good. In the 20th century, the United States suffered two world wars and other trauma and expensive military conflicts; depression; twelve or so recessions and financial panics; oil shock; a flu epidemic; a shameful presidential resignation. But the road rose from 66 to 11,497."
Buffett also emphasized simplicity and efficiency. Despite his success as a stock player, he recommends providing low-cost S&P funding to most investors, believing that most professionals perform better over time. Buffett's strategy itself is not flashy, and he provides a blueprint for sustainable wealth creation. This article introduces Warren Buffett's stock picks, which are especially suitable for new investors looking to build a strong portfolio.
Close-up of a modern payment terminal with a bunch of credit cards on the side.
In this article, we explore Warren Buffett’s Q4 2024 portfolio, picking 12 stocks with the highest hedge fund sentiment. The stocks are backed by Wall Street hedge funds and Omaha’s own Oracle. These stocks are ranked in ascending order, based on the number of hedge fund holders in the fourth quarter of Insider Monkey. We also include the value of Berkshire Hathaway's shares in each company.
Why are we interested in stocks that hedge funds to accumulate? The reason is simple: Our research shows that we can beat the market by mimicking the top stocks of the best hedge funds. Our strategy for quarterly newsletters selects 14 small and large stocks every quarter, returning 373.4% since May 2014, beating its benchmark by 218 percentage points (See more details here).
Number of hedge fund holders: 181
Berkshire Hathaway's equity value: $2,622,329,258
Visa Inc. (NYSE:V) is a global fintech company that ranks second on our list of top stock drafts for beginner Warren Buffett. On February 21, Keefe, Bruyette & Woods reiterated its better-than-visa rating for visas, with a target price of $400. Analysts observe that even with the mature card market, Visa's focus, global expansion and stronger customer relationships are expected to keep its revenue growth at double-digit rates.
On March 3, Visa Inc. (NYSE:V) announced that it can use smartphones to process payments, which has grown 200% over the past year, helping millions of small businesses accept contactless payments. It gains appeal in the US, UK and Brazil, making payment processing easier and more efficient. Visa is extending this technology with new features like Tap, such as adding cards and Tap to send, making it easier and safer for everyone.
For the first quarter, in fiscal 2015, Visa Inc. (NYSE:V) reported that GAAP net revenue increased by 5% to $5.1 billion, and revenue increased by 10% to $9.5 billion. This growth is driven by strong performance in payment volume, cross-border transactions and processing transactions. Payments grew 9%, while cross-border transactions soared 16%. Service revenue and data processing revenue also increased by 8% and 9% respectively. By the end of the quarter, Visa's total cash and investments were $16.1 billion.
According to Insider Monkey's fourth-quarter database, 181 hedge funds on visa companies (NYSE:V) are bullish, compared with 165 funds in the previous quarter. Chris Hohn's TCI Fund Management is the company's largest stakeholder, with 16.8 million shares worth $53 billion.
Overall, v Ranked second In the best Warren Buffett stock pick for beginners. Although we acknowledge that V is an investment potential, our belief is that AI stocks have greater hope to provide higher returns and do so in a shorter time frame. AI stocks have risen since the beginning of 2025, while popular AI stocks have lost about 25%. If you are looking for more promising AI stocks than V, but their earnings are trading at less than 5 times the price, check out our report The cheapest AI stock.
Read next: According to billionaires, there are 20 best AI stocks available now, and 30 best stocks to buy now.
Disclosure: None. This article was originally published in Internal monkey.