Chuck Akre’s ‘Three-Legged Stool’ Approach and His Top 5 Stock Picks

4. Visa Inc. (NYSE:V)

Akre Capital Management’s Stake Value: $1.16 billion

Percentage of Akre Capital Management’s Portfolio: 7.9%

Number of Total Hedge Fund Holders: 159

Visa Inc. (NYSE:V) is a global payment-network operating company that enables transactions between merchant’s and customer’s banks. Akre Capital Management’s stake in the company amounts to $1.16 billion as of the first quarter of 2022. 

On May 11, Global travel platform Agoda announced the news of its partnership with Visa to offer interest-free credit card installments on its booking platform. Agoda will be the first online travel company to offer this payment facility with Visa in the Asia Pacific region.

Goldman Sachs analyst Will Nance initiated Visa’s coverage 6 days later, with a ‘Buy’ rating on the shares and a price target of $282 which implies a 43% upside.

Polen Capital mentioned Visa Inc. (NYSE:V) in their “Polen Global Growth Fund” investor letter of Q1, 2022. Here is what they said: 

“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.”