But one guiding light could be to see what the pros are doing. With that in mind, let’s look at five of the most popular US stocks among billionaire hedge fund managers so far in 2026.

Five hedge fund stock picks

While hedge funds are known for using complex investment strategies, several high conviction names appear repeatedly on billionaire buying lists.

These are:

1. Alphabet.
2. Meta Platforms.
3. Nvidia.
4. Vertiv Holdings.
5. Visa (NYSE:V).

The first three likely need little introduction, given their dominant presence as ‘Magnificent Seven’ tech stocks. And Vertiv seems to be continuing the artificial intelligence (AI) theme with the business manufacturing cooling, thermal, and power management systems for their data centres.

But the interesting standout is Visa. Overall, the financials sector has been underperforming versus the S&P 500, with investor sentiment being weighed down by instability within the private credit market, deterioration of consumer savings, and uncertainty surrounding interest rates.

So why are the billionaires seemingly rushing to buy this payments business?

An interesting standout

Like the wider financials sector, Visa shares haven’t been stellar performers of late. In fact, over the last 12 months, the US stock’s fallen close to 8% while its parent index delivered a near-20% return.

Yet when looking at the underlying business, net revenues and income are actually still growing by double digits, with management expecting more double-digit growth throughout the rest of 2026.

As such, it seems that hedge funds are capitalising on this disconnect between value and price. And with this high-quality compounder now trading at a more attractive valuation, it isn’t surprising to see the billionaires take advantage. Even more so given the growing geopolitical uncertainty.

Risk versus reward

Even seemingly rock-solid companies like Visa have their weak spots. And there’s a big threat called the Department of Justice (DOJ) looming over this business.

In September 2024, the DOJ accused Visa of illegally monopolising the debit card market through volume discounts and exclusionary agreements, forcing banks and merchants to stay on its network while freezing out competition.

The trial could still be a few years away. But a negative outcome could be far more significant than a regulatory fine. If Visa’s forced to dismantle its merchant incentive structures, transaction volumes could crumble.

The company’s also facing additional legal pressure from ongoing investigations by the European Competition Authority as well as merchant fee class action lawsuits.

With $16.4bn of cash & equivalents on its balance sheet, Visa has a substantial cash cushion to absorb these costs. But if they all land at the same time, it could translate into substantial pressure on this business.

So is it a risk worth taking? The billionaires certainly seem to think so. And with Visa shares now trading below even the most pessimistic stock price target from institutional analysts, now could indeed be a good time to dig a little deeper.

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However, billionaire hedge fund manager and philanthropist Sir Chris Hohn doesn’t bother with any of that. He concentrates capital into a small handful of companies (just nine at the end of the third quarter). 

Yet this strategy has worked wonders. Since 2003, his fund — The Children’s Investment Fund (TCI) — has delivered annualised returns in the ballpark of 18%-20% (net of fees). 

So how has he achieved these world-class returns? 

A strategy honed over decades

On one level, Hohn’s strategy is very simple. It can be boiled down to this: he hates competition (his words). 

As such, the hedge fund manager prefers to invest in monopolies or duopolies. That is, he chooses companies operating in industries with such high barriers to entry that he can be almost certain they’ll still be around in 20-30 years. 

TCI’s portfolio reflects this, as we can see below. These nine are extreme high-moat companies (many act like tool booths). 

Another thing worth mentioning is that, unlike most other hedge fund managers, Hohn’s truly long-term in his outlook. This chimes with the Foolish investing philosophy espoused by The Motley Fool.

The average holding period of the TCI portfolio is eight years (and counting). 

High conviction

As we can see below, Hohn has an incredible 61% of the portfolio in just three S&P 500 stocks (General Electric, Visa, and Microsoft). 

Yet TCI looks to be on course for another positive year of performance. Because GE is up 72.2% so far in 2025, while Ferrovial and Alphabet have soared 41.3% and 65.1% respectively. Microsoft is also contributing, with a 16.5% increase. 

However, Visa’s only up 3.4%, thereby lagging the S&P 500 by some distance. This is perhaps a little surprising. After all, its business model — where it takes a cut of the hundreds of billions of annual transactions processed through its network — is incredibly powerful.

One thing that might be hanging over the stock is regulatory concerns. Earlier this year, European regulators intensified an antitrust investigation into Visa’s fee structure and how it may be burdening European retailers. This may one day result in fee reductions that negatively impact margins. 

That said, Visa’s probably one company that could take a margin hit and still be an attractive stock to own. In fiscal 2025, its capital-light model generated a mind-blowing 50% net margin! 

Worldwide, there are 4.8bn Visa cards in use, with over 150m+ merchant locations accepting them. This creates a massive network effect. And as card transactions continue to replace cash around the world, Visa’s poised for further steady long-term growth. 

The stock’s down 12.5% since June, putting it on a not-too-demanding forward price-to-earnings ratio of 27. 

At this price, I think investors should consider buying the dip in Visa. Just maybe not the hefty 18.2% portfolio weighting Chris Hohn runs with!

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Here are three holdings I expect to do well over the next decade. As such, I think they’re worth considering.

Pricing power

Let’s start with one powerful trend that’s ongoing: the rise of the world’s super-rich. According to Oxfam, the number of billionaires jumped 7.3% last year to 2,769. Multimillionaires are also increasing, especially in Asia.  

This is an incredibly supportive backdrop for luxury carmaker Ferrari (NYSE: RACE). Last year, the firm shipped just 13,752 cars, with roughly 81% of those going to existing Ferrari clients, and nearly half to buyers who already owned more than one Ferrari. 

The company deliberately limits production to maintain brand exclusivity. This has two powerful consequences. First, it gives Ferrari enormous pricing power. With demand far outstripping supply, it can raise prices, while still keeping first-time customers waiting in line.

Second, ultra-wealthy collectors create an incredibly resilient customer base. That makes the business less exposed to economic downturns.

One risk worth highlighting is that Ferrari has just postponed the timeline for its second EV model due to a lack of customer interest. If customers aren’t happy with the first Ferrari EV in 2026, this could harm the brand’s image.

Like its cars, Ferrari stock is far from cheap. But I think it will head higher by 2035 as aspirational multimillionaires multiply.

Robotaxis

Sticking with the car theme, we have Uber (NYSE: UBER). In Q1, trips grew 18% year on year to 3bn, while monthly active customers rose 14% to 170m.

Over the next decade, I expect driverless taxis to go mainstream. Google’s Waymo is now doing over 250,000 paid robotaxi rides a week in a handful of US cities, taking the total to more than 10m. But there are dozens of other autonomous vehicle start-ups.

Rather than spend millions marketing their own apps, I expect most to tap into Uber’s vast existing global network. Many have already signed partnerships, including Waymo in some cities.

One that hasn’t, though, is Tesla, which is tentatively launching its own robotaxis right now in Austin, Texas. Were Tesla to succeed, this could be a direct threat to Uber’s competitive position, at least in the US.

However, if robotaxis successfully scale up, there’s a chance that Uber becomes more profitable, given that drivers are its biggest cost today.

War on cash

I want to end with a more obvious unstoppable global trend, which is the shift towards digital payments. Whether it’s smartphones being used in the real world or for shopping online, the war on physical cash is relentless. 

One obvious beneficiary is Visa (NYSE: V). In its last fiscal year, there were nearly 234bn transactions processed on its networks, up from 192.5bn two years before. And people spent a whopping $13.2trn using Visa cards worldwide!

Given that Visa takes a small cut of all the action, the firm is incredibly profitable. Its net margin sits comfortably north of 50%.

We’re seeing the digital payments trend now spreading to Africa, Latin America, and the wider Asian region. Barring regulatory intervention in Visa’s business, which is a key risk, I expect the stock to be much higher in 2035 than it is now.

The post Over the next 10 years, I think I’ll make money from these 3 stocks in my ISA appeared first on The Motley Fool UK.

Take Nvidia as an example. By successfully capitalising on the artificial intelligence (AI) spending tailwinds, the GPU chip designer has seen its share price skyrocket by over 1,400% during the same period!

This goes to show that by investing in top notch stocks, some tremendous gains can be unlocked. So with that in mind, I asked ChatGPT what it believes are the best S&P 500 shares to buy right now that aren’t in the ‘Magnificent 7’.

A financial kingpin

The first pick was Visa (NYSE:V). Chances are this business needs no introduction. Its technology infrastructure powers an estimated 39% of all debit and credit card electronic payments worldwide. And since the firm charges a small fee on each transaction moving through its payment network, the business is a cash generating machine.

As such, the balance sheet is in tip-top shape. And with more purchasing activity shifting away from traditional cash transactions, the business has ample long-term tailwinds to drive growth moving forward. That certainly sounds like a compelling investment case, so what’s the catch?

Despite its dominant position, Visa isn’t without its risks. Regulators have been clamping down on the firm’s fee structure, limiting the group’s ability to expand profit margins. Its enormous market share also puts it squarely in the eyes of anti-trust investigators to protect customers and consumers. That’s a handicap that many of its fintech rivals don’t have, making life a lot easier for disruptive start-ups in the fintech space.

So is this a good S&P 500 stock to consider buying in May? I think it definitely deserves a closer look. The group’s valuation is pretty demanding, with a price-to-earnings ratio of 52. But given the quality of this business, that’s a premium that might be worth paying.

Opportunities in healthcare

Another two stocks ChatGPT recommended as top-tier companies are Johnson & Johnson and UnitedHealth. Both a prominent players in the healthcare sector. And considering demand for healthcare products and services is unlikely to disappear anytime soon, both businesses appear to have ample longevity.

Those are obviously some attractive traits, particularly for investors looking to load up on defensive stocks. However, just like Visa, these companies have their weak spots.

Developing new drugs and medical devices is a regulatory nightmare that’s enormously expensive and highly competitive. Johnson & Johnson’s size certainly helps in this regard, but clinical trial failures on critical projects can be disastrous, especially if a competing product succeeds.

Meanwhile, health insurance is an enormously complicated business. If the company doesn’t price its plans correctly, losses from customer claims could drive earnings in the wrong direction.

The bottom line

All three S&P 500 stocks appear to show promise. But are they the best S&P 500 stocks investors can buy right now? I’m not convinced. I’m certain there are far more promising opportunities hidden in the US’s flagship index waiting to be discovered.

The post I asked ChatGPT for the best S&P 500 stocks to buy and it recommended… appeared first on The Motley Fool UK.

One of the world’s top financial data companies

Let’s start with London Stock Exchange Group (LSE: LSEG). It’s a financial markets infrastructure and data company and one of the leading financial data players globally today.

Back in February, this stock was trading above 12,000p. Today however, it can be snapped up for around 10,300p. At the current price, the price-to-earnings (P/E) ratio is in the mid-20s. And I think that’s a very reasonable valuation.

This is a software company with a world-class product, institutional clients that are unlikely to suddenly stop paying for its data services), and the ability to raise its prices, especially now that it’s rolling out artificial intelligence solutions.

It also has several ways to potentially create value for shareholders. For example, it could sell off the London Stock Exchange itself. Or it could list its shares in the US, where it would probably get a higher valuation.

Of course, there are risks to consider with this stock. One is competition from the likes of Bloomberg and FactSet, which are both major players in the financial data space.

All things considered, however I’m very bullish on this one. Currently, it’s my largest UK stock holding.

A wide economic moat

Another high-quality stock I like the look of right now is Visa (NYSE: V), which is listed in the US. It operates one of the world’s largest electronic payments networks.

In early March, it was trading for around $360. Now though, Visa shares can be picked up for around $310. At that share price, the forward-looking P/E ratio using the earnings forecast for the year ending 30 September 2026 (next financial year) is under 25. Again, that strikes me as a very reasonable valuation.

This is a business with a very wide economic moat (meaning new competitors can’t easily steal market share) and plenty of long-term growth potential given the global shift away from cash towards electronic payments. And it doesn’t face any credit risk from credit card loans as it doesn’t issue cards – it simply operates the payments network.

There are other risks to consider, however. A major collapse in consumer spending is one. This would most likely lead to lower revenues for the company as it takes a small slice of every transaction on its network. Changes in the way people pay for things in the long run (such as a shift to cryptocurrencies) are another risk to think about.

Yet I think this company has all the hallmarks of a brilliant long-term investment though. For me, it’s a core holding and I think it’s worth considering today.

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Can AI automate stock-picking ideas for me? Well, over the weekend, I asked ChatGPT for its ‘best 3 S&P 500 stocks for me to buy for the next five years’. Here’s the trio it came up with.

Behold the bot’s answers

The app’s top pick was Nvidia (NASDAQ: NVDA), which it said is “driving the AI revolution” in data centres with its leading graphics processing units (GPUs). It’s positioned as the “picks and shovels provider in a gold rush“.

Next, ChatGPT went for Microsoft. It said the software giant has “transformed into a cloud and AI leader”. Its Azure platform’s fuelling global digital transformation, while the firm enjoys attractive recurring subscription revenue.

Lastly, the AI assistant named Visa (NYSE: V). The payments giant thrives as a “toll collector” that’s benefiting from the shift towards a cashless world.

My thoughts

My initial reaction to these picks is that they’re very strong. All three firms are market leaders, with formidable competitive advantages, exceptional profit margins, and top-tier management.

On the other hand, I also think they’re very obvious. With $3trn+ market-caps, Nvidia and Microsoft are the second- and third-largest companies in the S&P 500. Meanwhile, Visa’s a $617bn juggernaut.

I’ve owned Nvidia shares in the past, while Visa remains one of my top holdings. Alas, I’ve never bought Microsoft stock, but I could get good exposure to it simply buying an S&P 500 index tracker fund.

As expected, ChatGPT summaries their business models and strengths well. However, the information it rattles off is quite generic and can be found anywhere online (unsurprising given that’s where it sourced it from).

Stock-specific risks

The bot offers no fundamental analysis, failing to mention for example that Nvidia’s gross margin has dipped from 78.4% in Q1 2025 to a forecast 73.5% in Q4 2025.

Additionally, there was no mention that Nvidia stock’s trading at an eye-watering 32 times trailing sales. If the firm’s future growth trajectory ends up lower than anticipated, the valuation may not be sustainable.

Microsoft stock’s in a similar position, trading at a pricey 32 times forward earnings. Much AI-fuelled growth’s already priced in, including that of ChatGPT parent OpenAI (which Microsoft has a large stake in).

For Visa, ChatGPT overlooks Vice-President-elect JD Vance’s Credit Card Competition Act. This bill aims to reduce card swipe fees (typically 2%-4%) that are shared by payment processors like Visa and the card-issuing bank. If passed, this bill could impact Visa’s profit margins.

This doesn’t mean I’ll be selling my shares however. Visa’s lobbying heavily against such legislation, arguing that it could lead to unintended consequences for businesses and consumers. But this context would be handy for people to know before deciding whether to invest, I’d argue.

I’ll keep tabs on these

I certainly wouldn’t bet against this trio outperforming over the next five years. What I’ll do is track their performance to see if they really do turn out to be the very best S&P 500 shares to buy right now.

The post I asked ChatGPT for the best S&P 500 stocks for me to buy in 2025. Here are 3 it found appeared first on The Motley Fool UK.

A safe pair of hands

The first company on my list is Visa (NYSE:V). The global payment card services provider offers me something different as there isn’t any major UK stock that’s comparable. There are banks and financial service providers, but nothing comes close to Visa.

Over the past year, the stock is up 13%. Despite being a large and mature company, it’s still managing to post impressive growth numbers. For example, in the latest quarterly results from July, net revenue grew by 11% versus the same period last year. This helped to filter down to a 20% increase in the earnings per share.

The firm is continuing to increase payment capabilities through partnerships. Over the past year or so, this includes deepening relationships with the likes of Stripe, as well as more specific ones like CIBC in Canada and Moniepoint in Africa. Evidence of the success can be seen from the fact that total processed transactions for the quarter was 59.3bn, a 10% increase from the year prior.

In my view, there’s still plenty of opportunities out there for Visa to boost profitability going forward. However, there’s increased chatter about a potential US recession later this year. If seen, customers would likely reduce card spending to save money, which would be a negative for Visa.

A defensive tech share

A second stock I like is Salesforce (NYSE:CRM). The share price is also up 13% over the last year, but it’s some way off the highs from Q1 of this year.

The tech firm provides customer relationship software, often used by businesses for the sales or client services teams. I’ve used the software in the past and really liked it. Although it has some competition, it has a strong hold of the marketplace. There isn’t really a UK stock I can think of that is comparable.

The reason why I’m considering adding this to my portfolio is because it combines the appeal of a US tech stock alongside being a more defensive idea. On the one hand, it should stand to gain if the tech sector keeps roaring on like it has in recent years. Yet if we do get a slowdown in the US, Salesforce should be able to withstand this better than others. This is because businesses rely heavily on the software used. Given the nature of the contracts, it’s not like companies can (or would want) to cut things off swiftly.

One risk is that the stock does have a high price-to-earnings ratio. It currently stands at 35.03, which is well above what I would call a fair value. This could indicate that the stock is overvalued.

Both ideas are on my watchlist to purchase when I have more free cash.

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Global diversification = stability

Visa operates in more than 190 countries and territories, and this provides it with much more stability than if it was concentrated in just one country. As an example, if there’s a recession in one region, the company can still benefit from growth in others where economies remain strong.

It also has an incredible 90% of the digital payments market share in 50 countries. Part of what has facilitated it is an adaptive approach to regional payment preferences and technology innovation.

The other major player is, of course, Mastercard, which currently has higher growth rates than Visa but is less established. In my opinion, while the former is potentially the more lucrative investment, the latter provides more stability and hopefully less volatility.

Visa is expensive for a reason

The shares currently have a high price-to-earnings (P/E) ratio of nearly 29. However, this is lower than its 10-year median of nearly 32. By comparison, the industry median is currently 14.5.

One crucial element I always keep in mind about Visa is that it’s an industry leader. As a result, its valuation deserves to be higher than most other industry peers.

Strong investor sentiment is required to keep the valuation high. With a revenue growth rate of 17% as a three-year average, I don’t think the market is going to fall out of love with the shares any time soon.

Nimble fintech companies could be a threat

There are rising new fintech companies and novel currency formats, including those powered by blockchain. While currencies like Bitcoin currently have much less utility in the market than traditional digital payments, this could change. It could disrupt Visa’s market position significantly over time.

Younger generations are favouring some of the new technologies that companies are developing. To combat this, I believe management might need to embed new currency solutions into its payment network more comprehensively.

On the other hand, it’s engaging with emerging innovators. This includes its Fintech Fast Track programme, where it invests in novel financial companies and embeds them in its platform.

In the best-case scenario, Visa is one of the most well-resourced businesses with the potential to integrate disruptive technologies strategically into its network. So, this could end up as a reason to be bullish as long as management navigates the market changes effectively.

Among my largest long-term holdings

The weight of this company in my portfolio changes over time, but it usually rests between about 5% to 10% of my total assets.

I feel comfortable having so much of my money in Visa shares because I consider it quite a low-risk investment. It’s supported by amazing profitability, including a net margin of 55%. Its margins continue to rise as its economies of scale become more pronounced.

I think I’ll be bullish on this business for a long time and it may just be one of my lifelong holdings.

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1. Diageo

First up is Diageo (LSE: DGE). To be fair, the spirits giant had been struggling for a while before this market sell-off. The FTSE 100 stock is down nearly 40% in two years!

As a shareholder, this hasn’t been fun to watch.

The problem is weak demand from cash-strapped drinkers, some of whom have been trading down from Diageo’s premium brands. In its recent annual results, it said sales in its Latin America and Caribbean region dropped 21% year on year, slightly worse than expected. Organic operating profit fell 4.8%.

Meanwhile, management has stated that this year is likely to be challenging too, meaning there’s a risk that sales and profits could fall further.

Why on earth am I interested then? Well, I suspect all this pessimism might now be reflected in the share price. The stock is trading at around 16.6 times forecast earnings, which looks pretty cheap to me. It’s been well into the 20s in years gone by.

Plus, the dividend yield is now 3.4%. That’s higher than usual, while the firm still generates plenty of cash.

Finally, there’s weakness across the spirits sector. Rival Pernod Ricard’s share price is down 38% over the last year while Rémy Cointreau’s has slumped 52%. So this isn’t a Diageo-specific issue.

Long term, I expect resilience and growth from its incredible stable of brands. And with falling interest rates supporting a recovery in consumer budgets, I think the stock looks attractive at 2,369p.

2. Visa

Next up is Visa (NYSE: V), which is another stock I already hold. It’s done much better than Diageo, rising 6% over the past year. However, it’s now dipped nearly 12% from a record high reached in March.

There are a few things I like here. First, Visa provides electronic payment solutions worldwide via its branded credit and debit cards. But it doesn’t take on credit risk, it simply processes the payments.

In its last financial year that ended in September, the firm executed 757m transactions per day on average! That drove net income of $17.3bn on revenue of $32.7bn, an increase of 11%.

That translates into a net profit margin of 53%. So the company is incredibly profitable.

Also, the stock is trading on a forward price-to-earnings (P/E ratio) of 24 versus a five-year historical average of 33.

A possible US recession would be problematic, as that could hurt consumer spending and transaction volumes. Increased regulation of the payments space is another risk to consider.

Then again, US recessions typically last less than a year, which means Visa spends more time benefitting from economic growth than suffering from contraction.

In October, CEO Ryan McInerney said: “There is tremendous opportunity ahead and I am as optimistic as ever about Visa’s role in the future of payments.”

I have to agree given that the world is moving away from cash and towards digital payments. With Visa near a five-year low on a P/E basis, I’m considering buying more shares.

The post 2 quality stocks I’m considering buying for my Stocks and Shares ISA in August appeared first on The Motley Fool UK.

[Just beginning your investing journey? Check out our guide on how to start investing in the UK.]

Apple

What it does: Apple is one of the world’s largest manufacturers of smartphones, tablets, and computers, among other products. It’s most renowned for the iPhone.

By Charlie Keough. Apple (NASDAQ: AAPL) shares have been flying in 2024. As such, they’re my top pick for August.

Even after surpassing its five-year high at points this year, I’m still confident that the share price of the world’s most valuable company by market capitalisation can keep rising.

I’m most excited by the potential moves it can make in the artificial intelligence space. For example, it recently announced that it will be integrating OpenAi’s ChatGPT into its mobile devices. Given this will only apply to iPhone 15 Pro or newer models, I suspect this will provide sales with a boost.

I also love the business given its dominant market position. There are more than 2bn active iPhones, iPads, Macs, and other Apple devices across the world.

There are risks. One is that recent data showed the firm saw its market share fall to 14% in China for the second quarter. It also experienced a slowdown in Chinese sales in the first quarter.

But as a long-term investment, Apple is a stock I’m incredibly bullish on. If I had the cash, I’d happily increase my position today.

Charlie Keough owns shares in Apple.

CrowdStrike

What it does: CrowdStrike is a cybersecurity firm providing endpoint security, threat intelligence, and cyberattack response services.

By Mark David Hartley. US cybersecurity firm CrowdStrike (NASDAQ: CRWD) might seem like an odd choice right now. The shares plunged 24% over a weekend in July after the company was blamed for widespread network outages that affected airlines, hospitals and banks. In the wake of the disaster, analysts slashed price targets and brokers downgraded ratings. Now, the firm faces potential lawsuits that could drag on for years.

While the saga is far from over, I think the worst of the losses have been priced in. As the shares begin to bounce back in the coming months, the current price could be a very attractive entry point. CrowdStrike is a £65bn company – I doubt it’ll collapse from one hiccup. Despite the fall, the company remains profitable for now, with earnings per share (EPS) at 54c and profit margins at 4%. And the current price is undervalued by around 45% based on future cash flow estimates. 

Mark Hartley owns shares in CrowdStrike

Intuitive Surgical

What it does: Intuitive Surgical is the global leader in developing minimally invasive robot-assisted surgery machines.

By Zaven Boyrazian. Technology is pivotal in most industries, enabling significantly more efficient operations. However, one area that seems to be flying under the radar is robot-assisted surgeries. Over the last 20 years, Intuitive Surgical (NASDAQ:ISRG) has become a titan in this space. And it now controls just shy of 60% of the global market share.

Today, over 9,400 of Intuitive Surgical’s da Vinci machines are deployed worldwide, with more than 2.2 million procedures performed in 2023 alone. Over the years, these figures have been rising, with sales, earnings, and free cash flow expanding by double-digits. So, it’s no wonder the share price is up 150% over the last five years.

Despite this impressive growth, the firm has barely scratched the surface when looking at forecasts. Of course, larger opportunities attract more competition. And Intuitive Surgical may soon find itself fending against rival firms attempting to take its market share. But with a multi-decade track record of delivering results, it’s a risk I’m willing to take.

Zaven Boyrazian owns shares in Intuitive Surgical.

Visa

What it does: Visa is a financial technology company that operates one of the world’s largest electronic payments networks. 

By Edward Sheldon, CFA. Visa (NYSE: V) shares have pulled back a little recently and I think they offer quite a lot of value at current levels. 

This is a high-quality, Warren Buffett-type company (Buffett owns shares in it). As the operator of the one of the world’s largest electronic payments networks, it has a wide ‘economic moat’.

Meanwhile, it’s a very profitable business with a long growth runway ahead. Over the next decade, trillions of transactions are likely to shift from cash to card. 

Of course, just like every business, Visa faces risks. The biggest risk I see is regulatory intervention (because it’s such a dominant company).  

Taking a long-term view, however, I’m backing this stock to do well. It’s trading on a forward-looking price-to-earnings (P/E) ratio of about 24 as I write this which I think is a very attractive valuation for a world-class business with significant long-term growth potential. 

Edward Sheldon owns shares in Visa 

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