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NYSE:V

Visa Inc. (V)

328.63
+1.39 (0.42%)
as of Jun 18, 2026, 11:56:59 pm Market Open.
318 watching
0
TOP PICK
No credit risk, just a toll booth. 55,000 transactions a second. Great opportunity for secular growth over the next several years, as people transition from cash. Pandemic has increased card use. Good global growth, especially with emerging markets. Good free cash flow and dividend growth potential, asset light. Yield is 0.59%. (Analysts’ price target is $220.37)
PAST TOP PICK
(A Top Pick Jul 12/19, Up 11%) Still likes it. Trend to cashless society is getting more entrenched. Impacted by lower economic activity, but rebounded nicely. Trades more like a tech stock than a consumer stock.
SELL
V vs. MA Both too expensive. Trading at double market multiple, which is extreme for what they offer. Stepped aside because of valuation.
BUY ON WEAKNESS

Warren Buffet has 43% of his portfolio in APPL. APPL is a wonderful brand and strong company. He does not own it today. What worries him a little is that more than half of their revenues come from iPhone sales. They are diversifying, but it will take time. People are tending to keep their phones a year or two longer today it seems. The valuation has made it quite expensive. He would wait for a pullback or consider V, GOOG or MSFT. Warren Buffet must have some amazing incite to take on that concentration in the portfolio.

PAST TOP PICK
(A Top Pick Jul 02/19, Up 10%) He continues to own this. It is really a toll booth -- they don't take on any credit risks, just the banks do. They have good organic growth and high teens earnings growth plus good cash flow. They use M&A and fintech to grow the business. The world is accelerating to a cashless society due to the pandemic.
BUY ON WEAKNESS
She continues to own this. It has a strong secular growth outlook in digital commerce. Cash is still a large component of payment in many countries, which gives Visa a tail wing going into the future. It is a bit expensive here. Wait for a pullback to buy.
BUY ON WEAKNESS
In late-2019 it was getting too expensive. The price simply was running away from the fundamentals. It got to a 40% premium to the market multiple. When he sold it, it was twice the market average multiple.
STRONG BUY

V-N vs. MA-N. He is so happy to own V-N and is kicking himself for not owning MasterCard. Shopping online promotes use of credit cards. There are so many long term tailwinds that you have to own them.

TOP PICK
The world is shifting away from cash payments. They just did a deal with WeChat Pay, a big part of the Chinese economy One of the best value stocks he owns given its huge free cash flow, though Visa is one of the most expensive on a PE basis. Visa is incredibly entrenched and can survive rival payment systems. (Analysts’ price target is $204.35)
TOP PICK
A perennial grower for many years. They had a big drop-off during the lockdown as people stayed home, but online shopping enjoyed a huge surge. They have great cash flow and continue to buyback shares. Expect dividend increases again in the future. The pandemic will drive direct payments away from cash that will benefit Visa. Now is a good entry point. (Analysts’ price target is $200.85)
COMMENT
A great company. Their business has waned a little as people stay home, but this is a temporary setback. Fintech is here to stay. The PE is too high now. He sold it last November for this reason. People will use plastic and avoid dirty cash, so this is a tailwind.
BUY ON WEAKNESS
It will have a slight impact from consumer spending declines. However, it ticks all the boxes of a Top S&P company, US markets and US dollars. He sees the recent volatility as an opportunity to buy on weakness. He would love to buy it at $135 again.
BUY

MA-N vs. V-N. Own either this or V-N. We saw adoption of tap to pay. People are doing a lot more tap to pay. Buy here. He prefers V-N over MA-N.

BUY ON WEAKNESS

Q1 earnings strong? He owns V instead of MA. Both are in a great position in the e-commerce space with their ability to accept digital payments. The earnings announcement by MA today were strong, but transactions were down. If it takes time to see things recover, their strong cash flow position will allow them to buy back shares and shore up their balance sheet. MA trades around 30 times earnings, so he would wait for a pullback. He thinks both MA and V may be 15% over valued right now.

HOLD
He does not own this right now. A great company -- a top tier high return on capital player. This causes it to trade a very higher multiples. If you own it, and it is not too large a holding, keep holding. However, expect their fees will be declining with lower consumer spending.
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