Top 5 Stocks to Buy in 2022 According to Motley Fool’s 1623 Capital

2. Visa Inc. (NYSE:V)

1623 Capital’s Stake Value: $11,709,000

Percentage of 1623 Capital’s 13F portfolio: 5.86%

Number of Hedge Fund Holders: 159

Visa Inc. (NYSE:V) is an American multinational financial services corporation that offers credit cards and payment systems. Securities filings for Q1 2022 reveal that Motley Fool’s 1623 Capital owned 52,800 shares of Visa Inc. (NYSE:V), worth $11.70 million, representing 5.86% of the total 13F portfolio. In Q1 2022, the hedge fund strengthened its hold on the company by 65%. 

Piper Sandler analyst Christopher Donat on July 6 reiterated an Overweight rating on Visa Inc. (NYSE:V) but lowered the price target on the shares to $204 from $239. The analyst stated that his largest concern for the Q2 earnings season in the payments space is guidance for the second half of 2022. He believes that inflation and economic concerns “could disrupt discretionary spending, such as cross-border travel”. 

According to Insider Monkey’s Q1 data, 159 hedge funds were bullish on Visa Inc. (NYSE:V), up from 142 funds in the prior quarter. Chris Hohn’s TCI Fund Management is the largest shareholder of the company, with approximately 20 million shares worth $4.4 billion. 

Here is what Polen Global Growth Fund has to say about Visa Inc. (NYSE:V) 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.”