5 Blue Chip Stocks To Buy According To Billionaire Richard Chilton

4. Mastercard Incorporated (NYSE:MA)

Chilton Investment Company’s Stake Value: $145 million

Percentage of Chilton Investment Company’s 13F Portfolio: 3.48%

Number of Hedge Fund Holders: 136

Mastercard Incorporated (NYSE:MA) is an American multinational financial services corporation that operates through a payment network that is widely spread across the globe, facilitating electronic transactions between merchants’ banks and the customers’ banks for “Mastercard” brand credit and debit cards. Chilton Investment Company’s stake in the company amounts to $145 million as of the first quarter of 2022.

Earlier this May, Goldman Sachs analyst Will Nance initiated coverage of Mastercard Incorporated (NYSE:MA) with a Buy rating and $460 price target, implying a 38% upside. After what he calls “lackluster returns in 2021 and a choppy start to 2022,” the analyst is constructive on the payments sector, stating that relative valuations have fallen significantly over the past six months and that the companies are positioned well to navigate a low-growth, inflationary world. He believes Mastercard Incorporated (NYSE:MA) will continue to deliver “best-in-class” earnings growth, supported by “strong secular tailwinds, and strong operating leverage as the company continues to add scale.”

Among the hedge funds being tracked by Insider Monkey, Virginia-based investment firm Akre Capital Management is a leading shareholder in Mastercard Incorporated (NYSE:MA) with 5.8 million shares worth more than $2 billion. Overall, 136 elite funds reported holding stakes in the payment services company.

Here is what Ensemble Capital had to say about Mastercard Incorporated (NYSE:MA) in its Q1, 2022 investor letter:

“Mastercard (7.6% weight in the Fund): This company literally earns a percent based fee on dollars spent. When inflation increases the prices of goods across the economy, Mastercard’s revenue increases along with inflation. Thus, the company in some respects is perfectly hedged against inflation with their revenue accelerating automatically when inflation surges.”