Warren Buffett is Selling These 5 Stocks

2. Visa Inc. (NYSE:V)

Number of Hedge Fund Holders: 143

Percentage Decline in Stake: 5%

Berkshire Hathaway reduced its stake in the world’s largest payment network company Visa Inc. (NYSE:V) by just 5% in Q3. This is a mere adjustment to the stake and does not represent a major sell-off. The fund first added the credit card stock in its holdings in 2011 and now has a remaining stake of 9.56 million shares worth $2.1 billion at the end of the September quarter. Visa Inc. (NYSE:V) represents 0.72% of Berkshire Hathaway’s portfolio.

Despite negative headlines about Amazon.com, Inc. blocking UK-issued Visa Inc. (NYSE:V) credit cards, market analysts see a buying opportunity for the credit card stock. Morgan Stanley analyst James Faucette kept an Overweight rating on Visa Inc. (NYSE:V) with a $280 price target, noting that the business risk with Amazon.com, Inc. “should pass with time.”

Overall, 143 of the 867 elite funds tracked by Insider Monkey reported owning stakes in the California-based company at the end of September 2021. The total value of these stakes is $26 billion.

In its Q3 2021 investor letter, L1 Capital mentioned Visa Inc. (NYSE:V) and discussed its stance on the firm. Here is what the fund said:

“In our view, the payment network company, Visa, remains very well positioned to participate in an ever-expanding market for electronic payments. In time, ‘Buy now, Pay Later’ may have a modest impact on Visa’s transaction volumes, however, in aggregate, we believe it will have the greater effect of supporting growth in electronic payments more broadly. In the nearer term, we believe the recovery in international travel as the world gradually normalizes and learns to live with COVID-19 will be materially positive for Visa’s financial performance. eCommerce will also remain a positive key driver for Visa growth.”