Warren Buffett is Buying and Holding These 5 Financial Stocks in 2022

4. Mastercard Incorporated (NYSE:MA)

Number of Hedge Fund Holders: 144

Mastercard Incorporated (NYSE:MA) is one of the most notable finance stocks in the first quarter Berkshire portfolio, with the hedge fund holding close to 4 million shares of the company, worth $1.4 billion. Warren Buffett initially invested in Mastercard Incorporated (NYSE:MA) in the first quarter of 2011, and he has consistently held the stake over the years. 

Mastercard Incorporated (NYSE:MA) posted its Q1 results on April 28, reporting earnings per share of $2.76, beating estimates by $0.60. The Q1 revenue of $5.17 billion grew 24.36% year-over-year, topping Street consensus by $267.59 million. 

Goldman Sachs analyst Will Nance on May 17 initiated coverage of Mastercard Incorporated (NYSE:MA) with a Buy rating and a $460 price target, which implies 38% upside. After “lackluster returns in 2021 and a choppy start to 2022,” the analyst is “constructive” on the payments sector. He believes Mastercard Incorporated (NYSE:MA) will continue to offer “best-in-class” earnings growth, owing to strong secular tailwinds, robust operating leverage, and increased scalability. 

In Q1 2022, Charles Akre’s Akre Capital Management disclosed a $2 billion stake in Mastercard Incorporated (NYSE:MA), making it one of the leading company shareholders. In the last quarter of 2021, 144 hedge funds were bullish on the stock. 

Here is what Saturna Capital Amana Funds has to say about Mastercard Incorporated (NYSE:MA) in its Q4 2021 investor letter:

“Given the likelihood of rising inflation and interest rates ahead, we anticipate adjustments to the portfolio to reduce exposure to highly valued stocks dependent on low interest rates to support terminal year valuations, while seeking investments in companies more correlated with a return to economic normalcy. We sold our position in Mastercard. Although Mastercard does not charge or collect interest, its association with credit activities was problematic.”