Is it Still Safe to Own Visa Inc. (V)’s Shares?

Wedgewood Partners, an investment management firm, published its fourth quarter 2022 investor letter – a copy of which can be downloaded here. A quarterly net increase of 5.2% has been recorded by the fund for the fourth quarter of 2022, below the S&P 500 Index’s 7.56% gain for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

In its Q3 2022 investor letter, Wedgewood Partners mentioned Visa Inc. (NYSE:V) and explained its insights for the company. Founded in 1958, Visa Inc. (NYSE:V) is a San Francisco, California-based multinational financial services corporation with a $466.7 billion market capitalization. Visa Inc. (NYSE:V) delivered a 6.09% return since the beginning of the year, while its 12-month returns are up by 2.83%. The stock closed at $220.41 per share on January 19, 2023.

Here is what Wedgewood Partners has to say about Visa Inc. (NYSE:V) in its Q3 2022 investor letter:

Visa rebounded as the Company continued to report strong growth, while concerns about potential adverse legislation related to its credit card routing practices receded as U.S. legislators failed to take action. Although Visa is not totally free from legislative risk, the Company’s value proposition to merchants as well as bank issuing customers and acquirers is robust enough to help blunt the potential effects any future legislation might portend. Over a multi-year time horizon, it would be difficult for any currently nonexistent or even subscale credit routing network to add the value that Visa (or MasterCard) can already add today, legislative fiat notwithstanding. “

Credit Card Rewards

Our calculations show that Visa Inc. (NYSE:V) ranks 5th on our list of the 30 Most Popular Stocks Among Hedge Funds. Visa Inc. (NYSE:V) was in 165 hedge fund portfolios at the end of the second quarter of 2022, compared to 166 funds in the previous quarter. Visa Inc. (NYSE:V) delivered a 17.73% return in the past 3 months.

In January 2023, we published an article that includes Visa Inc. (NYSE:V) in 5 Best Dividend Stocks To Buy and Hold. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q4 2022 page.

Suggested Articles:

Disclosure: None. This article is originally published at Insider Monkey.