5 Stocks Billionaire Tiger Cub Rob Citrone is Buying

Below we present the list of 5 Stocks Billionaire Tiger Cub Rob Citrone is Buying. For our methodology and a more comprehensive list of the billionaire’s favorite stocks right now, please see 10 Stocks Billionaire Tiger Cub Rob Citrone is Buying.

5. Visa Inc. (NYSE:V)

Value of Discovery Capital Management‘s 13F Position: $8.04 million

Number of Hedge Fund Shareholders: 163

Rob Citrone’s Discovery Capital Management built a new stake in Visa Inc. (NYSE:V) during Q1, buying 36,233 shares. Given its attractiveness as a long-term investment, which is characterized by its inclusion in the 13F portfolio of legendary value investor Warren Buffett, it’s not surprising that Visa has suffered very little volatility in terms of hedge fund ownership throughout the pandemic. The company consistently ranks near the top of our list of the 30 Most Popular Stocks Among Hedge Funds: 2022 Q1 Rankings.

Visa Inc. (NYSE:V) shares are down by 9% this year after having undergone several notable rises and falls. Investors seem to be unsure what to make of the company’s prospects given the economic uncertainty. A possible recession and declining consumer confidence may not bode well for the financial services company. On the other hand, Visa is growing at a strong rate, boosting revenue by 25% year-over-year in the company’s fiscal Q2, while its non-GAAP earnings shot up by 30%. Analysts don’t see that trend slowing down much over the next five years either, predicting 18% annual growth.

The Polen Global Growth Fund believes that with profitable cross-border transactions set to rebound, Visa Inc. (NYSE:V) should be a good investment in the long run, discussing the company in its Q1 2022 investor letter:

“We added to both Visa and Mastercard during the final quarters of 2021, based on the belief that both businesses were trading at attractive prices and poised to deliver, double-digit returns over the next three to five years. Cross-border transactions–a highly profitable business segment for both companies–represent roughly 10% of Visa and Mastercard’s volumes and 25% of their gross revenues, so lockdowns have severely impacted this segment due to stifled travel. While it was impossible to know when people would begin traveling again, we accepted this reality with the belief that travel would eventually return. Both companies have commented that as soon as a country or geography reopens, cross-border volumes reignite, amplifying each business’s growth and profitability. We think these near- term headwinds have created an attractive long-term investment opportunity.”