Visa benefits from the war on cash and strong network effect, making it a solid investment choice.

From Nasdaq: 2025-06-24 05:59:00

Berkshire Hathaway’s $281 billion public equities portfolio includes large holdings like Apple and American Express, but also smaller ones like a financial stock that has generated a 428% return in the past decade. Will this position continue to rise?

Visa, a tiny position in Berkshire’s portfolio, benefits from the war on cash as digital payments increase. With a $657 billion market cap, Visa’s network effect drives ongoing growth, processing $3.9 trillion in payment volume in the latest fiscal quarter. 83% of U.S. consumers use cash, indicating room for Visa to grow.

Visa’s wide economic moat protects it from disruption, with billions of active cards and merchant locations forming a valuable network effect. Despite attention on stablecoins, Visa’s strong position in the economy and consistent earnings growth make disruption unlikely.

Although Visa has outperformed the market, its high price-to-earnings ratio presents downside risk in the future. However, its long-term earnings growth trend suggests future gains, making it a solid investment choice.

Considerations before investing in Visa include its exclusion from the Motley Fool’s top 10 stock picks. While Visa may not be among the top choices, Stock Advisor’s historical performance of 994% average return outpaces the S&P 500’s 172%. Join Stock Advisor for access to the latest top 10 list.



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