Warren Buffett Is Holding These 5 Tech Stocks Despite Selloff

4. Visa Inc. (NYSE:V)

Number of Hedge Fund Holders: 142

1-Month Decline in Share Price as of May 17: 4.30%

Visa Inc. (NYSE:V) is a payments technology company. Warren Buffett’s Berkshire Hathaway first invested in Visa Inc. (NYSE:V) back in Q3 2011, and the hedge fund has consistently held its position in the company. In the first fiscal quarter of 2022, Buffett owned 8.2 million shares of Visa Inc. (NYSE:V), worth $1.84 billion. The share price dropped by 4.30% in the past month. 

On April 26, Visa Inc. (NYSE:V) reported its Q1 2022 results, posting earnings per share of $1.79, beating market consensus estimates by $0.14. The revenue climbed 25.48% year-over-year to $7.19 billion, outperforming analysts’ predictions by $366.88 million. 

Goldman Sachs analyst Will Nance on May 17 initiated coverage of Visa Inc. (NYSE:V) with a Buy rating and a $282 price target, implying 43% upside. The analyst also added the stock to the firm’s Americas Conviction List. He sees Visa Inc. (NYSE:V) as the global leader in fintech with “attractive leverage to the long-term secular growth driver from payment electronification”. 

According to Insider Monkey’s Q4 data, 142 hedge funds were bullish on Visa Inc. (NYSE:V), compared to 143 funds in the last quarter. In Q1 2022, Chris Hohn’s TCI Fund Management was a notable shareholder of the company, with almost 20 million shares worth $4.4 million. 

Here is what Wedgewood Partners has to say about Visa Inc. (NYSE:V) in its Q1 2022 investor letter:

“Visa continued to benefit from strong consumer spending as well as a recovery in crossborder payment volumes, more recently driven by the return of travelers. While the emergence of the “Omicron” variant of COVID early in the quarter posed a risk to this travel recovery, it proved short-lived, with most of Europe, North America, and Latin American re-engaging in cross-border travel. Visa continues to extend its network to all comers. By processing over $10 trillion in volume per year, Visa has unparalleled scale and, as a result, can sell this scale to its customers at very attractive economics. For example, “FinTech” businesses will often charge customers upwards of 3-5% to transact, while Visa takes mere basis points on most transactions, despite enabling service levels historically reserved for only the largest financial institutions. After adding to Visa late last year, we are most pleased that Visa is back to one of our top 5 holdings.”