Group 1: Visa - Visa is considered one of Warren Buffett's best stock picks, with a significant increase in share price from $30-$40 in 2011 to nearly $300 today [2][3] - The company has a market capitalization of approximately $550 billion, with potential to exceed $1 trillion in the future [3] - Visa holds a dominant position in the U.S. credit and debit card market, with a 61% domestic market share, benefiting from strong network effects [4] - The company's scale provides a durable competitive advantage, reflected in a nearly 50% return on equity and a profit margin of 55% [5] - Visa shares are trading at 28 times earnings, which is slightly below the S&P 500 average, making it attractive for both growth and value investors [5] Group 2: Nu Holdings - Berkshire Hathaway has invested over $1 billion in Nu Holdings, a fintech company that operates exclusively via smartphone in Latin America [6][7] - Nu has disrupted traditional banking by offering competitive services directly to consumers, amassing over 100 million customers in under a decade [7] - The company has achieved significant growth, with sales increasing by 50% to 100% year-over-year, despite a market cap of $70 billion [7] - Although Nu's stock trades at 45 times earnings, its growth profile suggests that this valuation may appear favorable in the future [8]
The Best Warren Buffett Stocks to Buy With $700 Right Now