DaVita HealthCare Partners Inc (DVA), Liberty Media Corp (LMCA): Billionaires Warren Buffett and Stephen Mandel Love These Stocks

WABCO Holdings Inc. (NYSE:WBC), a $4.9 billion market cap auto parts company focusing on braking and suspension systems, was another top pick from both Buffett and Mandel. Wall Street analysts believe that the company’s earnings will grow considerably over the next several years, and so while the trailing P/E is 17 this valuation comes out to 14 times consensus earnings for WABCO Holdings Inc. (NYSE:WBC) for next year and a five-year PEG ratio less than 1. Net income grew by 10% last quarter compared to the second quarter of 2012, off of a 7% increase in sales.

Rounding out our list of common picks between these two billionaires is Visa Inc (NYSE:V). In addition to Lone Pine, many other Tiger Cub hedge funds like credit card stocks and billionaire Andreas Halvorsen’s Viking Global owned 2.6 million shares at the beginning of April. Visa Inc (NYSE:V) carries a premium valuation, with trailing and forward earnings multiples of 22 and 20 respectively, so markets have already priced in high growth for the company. In Q2 Visa experienced a sizable increase in revenue versus a year earlier, so it may be worth keeping an eye on, but for now we would prefer to consider other credit card stocks.

Disclosure: I own no shares of any stocks mentioned in this article.